"If the Nasdaq is outperforming, it implies narrow leadership in the marketplace," Bernstein said."And narrow leadership is an end of cycle event, not an early cycle event."
He added: "You really want it to be the exact opposite. Early cycles are dominated by broad market leadership."Morgan Stanley says to load up on these 10 stocks featured on the firm's 'buy list,' which has dominated the broader market this year The outsize performance of tech also manifested itself in the S&P 500 in the four-day span including and following the US presidential election. The information-technology and communication-services sectors spiked roughly 9% and 7%, respectively, over the period. Those were the biggest industry gains in the index.
Big Tech's market dominance has been a major topic on Wall Street after investors watched how quickly therebounded off its lows in March. Many attribute a large portion of the market's recovery to the outperformance of a small group of mega-cap tech stocks that make up roughly a quarter of the market cap-weighted S&P 500. When Big Tech moves, it drags full indexes along with it.
Bernstein told investors to run a"barbell strategy" in their portfolios against this backdrop. That involves owning technology stocks, but also holding traditional cyclical stocks like energy, industrials, and transports.
95% only bad news(
Century of the pharmadollar
the economy is based on consumer spending. big tech mean notthing if people are saving which they are at record amounts.