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Asset management and fund structuring boutique

A rare pattern

Jun 18, 2024

This year, the performance of US stocks has been driven by an unusually small number of stocks as only 30% of the S&P 500 have outperformed the index year-to-date. Remarkably, this is the second consecutive year with such a low percentage. This 2 years pattern has previously been seen only during the Internet bubble. Historically, the median percentage over the last three decades has been 50%. From this, we draw two key conclusions:

  1. The current pattern is exceptionally rare, especially as it appears 2 years in a row.
  2. In a market where a few stocks are driving the entire performance, it is crucial to stay vigilant and actively manage investments.

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