The S & P 500 has been in an epic trading range between 3,800 and 4,200 for seven months, which Julian Emanuel at Evercore ISI has called (in deference to Seinfeld) “A Show About Nothing.” His point is that despite all the worries, the major index has held up, albeit in a trading range. Still, the discussion among market watchers this weekend was all about divergences. Simply put: the big indexes are doing OK, but the average stock is not. And that is a problem. Big-cap tech is back but not a lot else If you just owned the top seven stocks in the S & P 500 , you’d think this was a rip-roaring quarter for passive investors in the S & P 500. The top S & P 500 stocks in Q2 by market capitalization Apple up 5.3% Microsoft up 7.8% Alphabet up 1.7% Amazon up 2.3% Berkshire Hathaway up 2.3% NVIDIA up 4.9% Meta up 9.8% So why is the S & P 500 up a measly 0.6% for the quarter? Because the middle and lower tiers of the market are not looking great. You can see this just by looking at the Invesco S & P Equal-Weight ETF (RSP), which weights each stock in the S & P 500 by equal weight, not market capitalization. Market cap vs. equal weight S & P 500 …
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