JEAN PIERRE VERSTER: The new stock market generals

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JEAN PIERRE VERSTER: The new stock market generals
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If the generals are the last to get shot, as they say in the market, be deeply cautious when it comes to the share price performance of some US big guns, writes JP_Verster.

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There is a stock market aphorism which says the generals get shot last. The phrase conveys the idea that a bear market cannot bottom until the largest stocks which drove the previous bull market lose significant value.

The generals have certainly been wounded in the US market over the past two weeks, with Meta Platforms, Amazon, Microsoft and Alphabet all falling sharply on the release of their latest quarterly results. These four stocks, together with Apple, accounted for about a third of the total return of the S&P 500 index for the five years up to the end of 2021...

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