Friends
Same as it ever was-stocks moved higher today led by, you guessed it, the big growth tech names. So much for broadening out. It’s a viscous cycle as folks move money into the index ETFs those same ETFs buy more of the heavily weighted names in their index. You guessed it – Apple, Microsoft, Nvidia, Meta, Amazon, Google etc. And higher and higher we go.
By the close, the Dow Jones Industrial Average was down 54 points to finish the day at 38,671. The S&P 500 was up 28 points to close at 5,026. The Nasdaq Composite Index was up 196 points to close at 15,990. Gold was down $8 to trade at $2,039 while oil was up $.30 to trade at $76.52 per barrel WTI.
Remember, over the past two years money has moved into money market accounts at a record pace. After years of zero interest rates, 5% was very attractive (and still is). I mention that because for those who would say that all the money is in stocks and that’s why they are at record levels I would say that there are billions of dollars that actually have not moved into stocks but into CDs, Treasury Bills and Money Market accounts. Having said all that are we due for a pullback? Sure, we are. But at the moment the bulls occupy the high ground while the bears continue to be cannon fodder.
Have a great weekend everyone.
