Post Edit History
the valuation gap between big tech and the rest of the s&p 500 has narrowed dramatically over the past few months.
instead of the market being carried almost entirely by the "magnificent seven," the rest of the index has started catching up. at the same time, big tech earnings have continued to grow, making these companies look less expensive relative to the broader market than they did earlier this year.
for investors, this could signal a healthier market where returns are driven by a wider range of companies rather than just a few mega-cap names. broader participation has historically been a positive sign for long-term market strength.
how it was in 2021:
instead of the market being carried almost entirely by the "magnificent seven," the rest of the index has started catching up. at the same time, big tech earnings have continued to grow, making these companies look less expensive relative to the broader market than they did earlier this year.
for investors, this could signal a healthier market where returns are driven by a wider range of companies rather than just a few mega-cap names. broader participation has historically been a positive sign for long-term market strength.
how it was in 2021:
the valuation gap between big tech and the rest of the s&p 500 has narrowed dramatically over the past few months.
instead of the market being carried almost entirely by the "magnificent seven," the rest of the index has started catching up. at the same time, big tech earnings have continued to grow, making these companies look less expensive relative to the broader market than they did earlier this year.
for investors, this could signal a healthier market where returns are driven by a wider range of companies rather than just a few mega-cap names. broader participation has historically been a positive sign for long-term market strength.
instead of the market being carried almost entirely by the "magnificent seven," the rest of the index has started catching up. at the same time, big tech earnings have continued to grow, making these companies look less expensive relative to the broader market than they did earlier this year.
for investors, this could signal a healthier market where returns are driven by a wider range of companies rather than just a few mega-cap names. broader participation has historically been a positive sign for long-term market strength.