Market Growth More Divided than during the Dotcom Bubble

Market Overview
Read time 0.7 minutes

Year To Date Performances:

1. The current rally in the market is characterized by its tech leadership. The breadth of growth in the market is at its lowest in 30 years, even narrower than the Dotcom Bubble. The top tech stocks have a P/E ratio of 32, while the other 493 companies in the index are trading at just 17. If the tech companies fall down to the rest of the index, then a massive crash could be coming. OR there could be a major opportunity to invest in the other 493 companies if they rise to a P/E of 20+, as has been the average the past decade.

2. In an unusual trend, stocks that exceed earnings estimates are currently underperforming those that miss. Surprisingly, beats are being sold more than misses, marking the first occurrence of such an earnings reaction since 2000.

3. Ready to put compliance on autopilot and get back to building world-class products? Vanta’s Compliance for Early Stage Startups pairs growing companies with one of our trusted partners to help you get audit-ready. Book a call to learn more. *

4. Headlines

   1. Consumer spending and manufacturing in the UK are both down in response to rising interest rates.

   2. 76% of Bitcoin currently in circulation has been in the same wallet for more than 6 months, indicating its owned by long-term investors.

   _{* This is sponsored content}

If you’ve made it this far, I wanted to direct you toward Deel. They are the world’s top HR platform and can automate your hiring, payroll and more for an international team. Check them out here.