The top holdings in the S&P 500® Index have been generating a sizeable portion of the market’s gains. This narrow leadership casts doubts on the durability and strength of the market’s rebound. But on the bright side, this narrow market looks quite different than the stock market bubble of 1999. So where do we go from here? Market participation has tended to broaden as economies recover from weak environments.
Get my analysis in my chartbook: What the narrow market means.
Deregulation and tax cuts could potentially provide a boost to US economic and market growth, while tariffs and immigration restrictions could pose challenges.
The potential for significant deregulation and tax cuts has excited many investors, leading US stocks to “climb the wall of worry” despite immigration and tariff risks.
Donald Trump’s red wave victory was the decisive end to a historic election. Will we see tax cuts and deregulation fuel growth? Or do trade wars and higher spending quash it?
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