The US Equity Market remains extremely concentrated… almost at the highest level in 100 years. Something big is coming. The VIX shows higher lows and is approaching a breakout.

by
Sharing is Caring!

The U.S. equity market is nearing its highest concentration in a century, with the top 10 companies, heavily dominated by tech giants, accounting for a massive 29.4% of the total market. This historic level raises alarms, as market imbalances of this scale often precede significant economic shifts.

The Volatility Index (VIX), often a barometer for investor anxiety, is showing “higher lows” — a pattern typically signaling an impending spike in market volatility. Higher volatility generally suggests mounting uncertainty, which can trigger sharp market moves and reflect broader investor concerns.

In the broader economy, S&P Global’s September report reveals a mixed outlook. Service sector activity has increased, which is promising since services form a large part of the U.S. economy. However, manufacturing is lagging, shrinking at a slower rate but still showing ongoing challenges. Employment figures add to this dual picture: the service sector has seen modest job reductions, while manufacturing employment has sharply dropped, revealing deeper strain.

See also  Unbelievable! Jeff Bezos calls out fake news and is going to demand media meet higher standards.

The S&P Global composite output index, which combines both sectors, hit a two-month high, indicating a slight lift in overall economic activity. However, the job losses and manufacturing struggles suggest a fragile foundation. These underlying weaknesses mean that despite some resilience, the U.S. economy could face mounting pressure as the year continues.

Sources:


See also  Rachel Maddow takes $5 million paycut, but still earns $25 million/year for doing one show per week. Major shakeup coming at msnbc, ratings down 40 percent.



 


Views: 170

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.