Being Broad-Minded Pays Off in Narrow Markets
The strong surge by AI and tech mega caps that’s powering indexes can historically be expected to spread to smaller companies.
The outperformance of AI and tech giants may just be the beginning for a broader rally.
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Tech stocks are back with a vengeance after their dreadful 2022, and have helped lift the Nasdaq 100 higher by a whopping 31% so far this year. They’ve also given enough of a lift to the S&P 500, the world’s most followed index, that it has now twice closed above 4,200, a level that for nine months appeared to be a ceiling. That milestone has given cheer to many. But does it matter that this has been achieved by only a handful of companies? That is the question that hounds investors.