By Thomas O. Herrick
Chief Market Strategist, Managing Director
A major characteristic of 2023’s equity market has been narrow, concentrated performance centered around the famed “magnificent 7” stocks, a handful of mega-cap technology companies. Along with yields, the key to 2024 equity performance will be breadth expansion. There are some early signs that heighten the odds of wider participation, including breakouts in the S&P 500 advance-decline line and small caps versus large caps. Both are supportive of major averages and broader participation in 2024.
Small companies are starting to get some traction.
Source: Bloomberg Finance
Source: Fairlead Strategies
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