It has thus far been a year in which the returns of a handful of mega-caps have dwarfed those of the average stock.
In fact, as of 06.14.24, the average stock in the Russell 3000 index and its Value and Growth components was in the red on the year.
The trend continued last week, as the average member of the Russell 3000 index lost 1.26% last week, the New York Composite index declined 0.86%, the S&P 500 Equal Weight index dropped 0.52% and the Dow Jones Industrial Average retreated 0.51%.
So, it was not a grand week for the market of stocks, even as the financial press argued that the stock market had a good five days.
Of course, the Nvidia express continued to steam down the tracks in the week ended 06.14.24, but just 4 “generals” contributed all the advance and then some for the Russell 3000 index, while the “soldiers” retreated.
VALUE WAS VERY MUCH THE PLACE TO BE
There are plenty of opinions about what the broad divergence might mean for stocks going forward, but students of market history might consider what transpired following the bursting of the Tech Bubble back in 2000.
Despite enduring significant volatility along the way, not to mention suffering through a miserable 2002, 2008 and 2011, Value strategies performed admirably, with the S&P 500 Pure Value index the easy winner, following the bursting of the Tech Bubble in March 2000.
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