“I read that the momentum names in the markets entered a bear market. If the market is heavily weighted in technology and that is true, then how is the S&P 500 still positive on the year? Something seems off to me in that.”
~ Bob S.
Two things can be true at the same time. What you likely read referred to the semiconductor names being down 20% from their peak—that part is true. The market still being positive on the year is also true. The way those two square is that the money leaving semis went into other parts of the market rather than out of equities altogether. This has been far more about sector rotation than indiscriminate selling. The equal-weighted S&P 500 is up roughly 3.5% over the past month, with the cap-weighted index slightly negative as a result.
