For the Second Time in History, the Stock Market Sends a Rare Warning Signal and Points to Looming Trouble Ahead
The S&P 500 (SNPINDEX: ^GSPC) has been indomitably bullish for four years. Nothing has successfully slowed down this bull market: tariffs, a war, or even an interest rate hike. And yet, below the surface, warning signs are sounding from every corner.
Earlier this month, analysts at MarketWatch astutely observed that 44% of S&P 500 stocks were in bear-market territory. In other words, more than two-fifths of the S&P 500’s stocks were trading at least 20% below their 52-week high. Around 24% were down at least 30%, 8% of the index was below 40%, and 3% were down a whopping 50%.
The S&P 500, in other words, may look healthy and strong as an index, yet nearly half of its companies are struggling individually. Put differently, the market’s impressive performance is masking its weaknesses, with only a handful of stocks truly driving the rally.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.