Reported about 1 year ago
The stock market has been exhibiting unusual patterns of concentration, with select pockets of strength offsetting pronounced sell-offs and keeping index volatility low. This seesaw behavior, where stocks do not move in the same direction, is generating a generationally weird market narrative. The recent market dynamics highlight how gains are concentrated in a few stocks during a bull market, with sector rotations and divergent returns among sectors and industries keeping volatility at bay. However, the risk lies in a potential 'correlated shock' among the companies that control a significant portion of the equity indices, which could disrupt the current decorrelation trend and lead to a new bear market.
Source: YAHOO