The top 10 global stocks by market value have a greater hold than ever before on the capital markets, and that could be a bad thing, says Ned Davis Research.
Ned Davis found that a heavy concentration in the years 2000 and 2021 was soon followed by a bear market.
However, there was an exception in 2020, when the rise in a handful of stocks broadened out and supported a bull market.
Ned Davis is watching for aggregate strength in key 50-day and 200-day indicators.
However, stocks could fall into a bear market if the rally this year fails to expand to more sectors, the firm said.
Persons:
Ned Davis, Tim Hayes, Hayes
Organizations:
Ned Davis Research, Microsoft, Nvidia, Tesla, Rally Watch