Sector Rotation vs Weak Breadth
If Tech and other growth stocks are market leaders, then of course the equally-weighted S&P500 is going to underperform lol.
At the same time, if Tech and other growth is underperforming, then the Equally-weighted S&P500 is going to outperform (see the back half of 2022).
It's just basic arithmetic.
You can see here how the Equally-weighted S&P500 vs Cap-weighted S&P500 trades tick for tick with the Value vs Growth Ratio.
And if you're wondering why the S&P500 and Dow Jones Industrial Average are underperforming the Nasdaq, it's for the exact same reasons.
The Nasdaq100 has way more Tech and Growth exposure than the S&P500, and it has way way more than the DJIA.
Again, it's just simple math.
It's not a market breadth thing.
It's a sector rotation thing.
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JC