Market Summary 2nd of Oct

If you haven't been watching closely, you might have missed some big changes in the stock market this year. The Russell 2000, a group of smaller companies, lost its profits for the year. The same happened with the S&P 500 equal weight, another group of companies. Bonds, which people invest in for steady returns, have decreased in value by 14% this year. However, the Nasdaq 100, which includes many big technology companies, has grown a whopping 36%! This is a big difference compared to others.

I once thought the Nasdaq's success was mainly because of advances in Artificial Intelligence (AI). But now I believe it's mainly because investors are looking for a safe place to put their money. Usually, during tough times, investors choose bonds. But with high inflation now, bonds aren't as appealing. Instead, many are turning to big tech companies that have reliable earnings and other advantages. But here's a thought: if things get better and a new positive phase begins in the market, will these tech companies still be the favorite?

Right now, the Nasdaq's success might be misleading. Today, for example, while the Nasdaq grew by 0.83%, many other stocks hit their lowest prices in a year. This shows that the overall market isn't doing as well as the Nasdaq might suggest. Even industries that were doing well recently, like coal and uranium, faced losses today.

In simple terms: We should be careful when deciding where to invest. We're waiting for clearer signs of where the market is headed. If big tech companies start to struggle too, it could mean that the worst part of the downturn is almost over.