Topic
A measure of how many securities participate in an index's move, using tools such as advance-decline lines to gauge whether a rally is broad or narrow.
Russell 2000 is up about 15.1% this year, but Furey Research found an average 0.5% gain across 11 midterm years, with gains in only 45% of them. The post-election record bulls cite looks very different once the last four midterms are included.
Reality
Microsoft, Nvidia, Apple and Meta added roughly 300 S&P 500 points in Q3, over 200% of the index gain, Citadel Securities commentary says. Holders of a cap-weighted fund own those weights automatically, so 500 names diversify less than the count implies.
Reality
Microsoft, Nvidia, Apple and Meta added about 300 points to the S&P 500 in the third quarter while the other members subtracted about 150. With roughly 311 stocks down, most of an index fund's money sat in the group that lost ground.
Perspective Coverage
3 publishersReality
Goldman Sachs says half of S&P 500 members sit 16% or more below their 52-week highs while the index is about 1% off its record. The gap points to a few heavily weighted AI stocks carrying the index as Treasury and European bond yields keep climbing.
Reality
Only 35% of S&P 500 stocks are beating an index up more than 13% in 2026, while a quarter of its members have fallen 10% or more. Over ten years, Trivariate Research finds just 23% of stocks beat the index, so thin breadth has made stock picking a low-odds bet.
Reality
The letter reads four breadth and credit divergences as a major market top forming. The most recent episode it cites, the weeks before April 2, 2025, was followed by a selloff the index has since recovered.
Reality
Mott Capital's Michael Kramer argues that deteriorating breadth in stocks and high-yield bonds, falling SOFR volumes and money fund outflows will meet another $317 billion of net Treasury issuance in October and November.
Reality