This is a rare technical distortion known as a negative market breath divergence. In simple terms, it means the stock market is showing a false sense of health.
How to protect your portfolio:
For new investors, don't let the all time high headlines trick you into excessive risks.
Avoid chasing the peak and be cautious about throwing all your cash into chip stocks that have already spiked.
Lean on Equal Weight Funds : Consider Index ETFs with equal weight $Invesco S&P 500 Equal Weight ETF(RSP)$ . This spreads your risk more evenly.
History has shown that market highs cannot be stabilised by a narrow number of stocks over the long term horizon. A narrow market is highly unstable & may lead to a sharp drop.
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- AugustineMac-ยท09-23 20:53I don't buy the idea that diversification has to mean equal weight. Narrow leadership can stay narrow way longer than people expect, and semis still look like the earnings engine hereLikeReport