Correction. A word that's being uttered more and more as the market continues to drift upward. So fa

• 09/12/21

Correction. A word that's being uttered more and more as the market continues to drift upward. So far this year the indexes have set 54 all time highs. Yet I'm sure many of you have been experiencing a much different reality. What gives? The S&P 500 has gone 34 days without rising 1% in any of them, the longest in 20 months. And the pool of companies feeling significant price pressure keeps expanding. More than half the index’s members have suffered peak-to-trough declines of at least 10% since May, data compiled by Morgan Stanley show. It’s worse in small-caps, where 90% of Russell 2000 stocks have already suffered their own 10% correction. Helping keep the market afloat are tech giants like Facebook, Amazon, Apple, Microsoft, and Google parent Alphabet a group known as Faang. Without the five, the S&P 500’s 4% advance this quarter would have been halved. Last week the S&P 500 declined 1.7% while the Russell 2000 slipped 2.8%. The Nasdaq 100 fared better, thanks to gains in tech megacaps like Facebook. As of Friday’s close, the average stock in the S&P 500 was down 10% from their 52-week highs. Despite a market increasingly perceived as overbought short sellers have been driven almost into extinction while professional forecasters were forced to raise their year-end targets after the S&P 500 surged well past the most optimistic projection made in January. So while you're waiting for a market wide correction, one has been occuring. This phenomenon of rolling corrections has been attributed from everything to the rise of retail investors to index investing. Whatever the cause, it's important to know what's happening beneath the headlines of all time highs. #tcardizzle #correction #faang

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