Right now though, the market has never been more top-heavy and the share of market constituents outperforming the broader index has never been lower.
According to Ed Clissold at Ned Davis Research, the percentage of stocks outperforming the S&P 500 this year is just 24.5%.
The percentage of S&P 500 stocks outperforming the index on a rolling three-month basis is just 20.3%, a record low.
Clissold says that the S&P 500's one-year gain after periods of relative strength by a small group of large caps is an average 1.8%.
These five stocks account for over a quarter of the S&P 500's $36.78 trillion market cap, and the top 10 account for a third of the total.
Persons:
bode, Ed Clissold, Ned Davis, Meb Faber, Chuck Prince's, Cambria's Faber, Jamie McGeever, Andrea Ricci
Organizations:
NYSE, Barclays, Apple, Microsoft, Nvidia, Ned Davis Research, Reuters, Google, Cambria Investment Management, Citigroup, Thomson
Locations:
ORLANDO, Florida