From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @granthawkridge
Using the S&P 500 as your investment proxy, you’re probably happy with your returns so far this year.
That’s even with the 5% pullback we finally saw last week — the first 5% pullback for the S&P 500 in 2021, and it took 229 trading days.
But the averages aren’t telling the whole story. Some stocks are going up, but most are not. We’ve been pounding the table about this for months already, and it’s been the main theme during the first three quarters of the year.
Unless you’ve been living under a rock, you already know the current environment is an absolute mess, as the weight of the evidence continues to hang in the balance.
In this post, we’ll show you why the S&P 500 is not the stock market and the stock market is not the S&P 500.
When we analyze equities as a “market of stocks” rather than “a stock market,” it becomes clear that we’re in the thick of a correction that started as early as Q1.
Here at All Star Charts, we like to call this a stealth correction!