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Financial News: Bear market hidden by passive ETFs

Financial News:

Bear market hidden by passive ETFs

Bear Market

Stocks are in a bear market, which is being hidden by passive ETFs. When major stock market indices are hovering at all-time highs, that may seem like an odd remark.

The top ten stocks in the S&P 500 index now account for more than a third of the whole index. In other words, a 1% increase in the top ten equities is the same as a 1% increase in the bottom 90%.

In 2021, the S&P 500 index was up almost 27%, whereas ARKK was down more over 20%. That is a significant performance difference, but it illustrates the gap between mega-cap corporations and the rest of the market.

Photo: Photo 177026632 © Marek Uliasz | Dreamstime.com

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Content ID: 1641910727 Created Tuesday, January 11, 2022 2:18 PM UTC by Aaron Stipkovich, Updated Tuesday, January 11, 2022 8:09 PM UTC by Aaron Stipkovich.