Breadth of market rally

The last 2 weeks or perhaps the past 2 months have showed us why many prefer a wider market rally, instead of an industry-focused one.

The magnificent 7 tech stocks have carried the market for the first half of the year. That’s because the inflow of money have been too focused on them.

And so when these money flow out, the market tanks. This is what we saw recently. When big institutions withdrew their money out from these few stocks, the market plummeted.

In total, they have lost billions in market value, dragging the whole market down.

If your portfolio is heavily focused on tech, then you will have to be able to take this kind of volatility.

Stock Market (Nov 2023) – More Sell Off or Oversold Rally??