Market Being Held Up By Just 4 Stocks | The Acquirer's Multiple®

In their recent episode of the VALUE: After Hours Podcast, Taylor, Brewster, and Carlisle discuss the Market Being Held Up By Just 4 Stocks. Here’s an excerpt from the episode:

Tobias: Moving on. Frank Zorrilla, who’s ZorTrades on Twitter, I saw somebody criticize this as being not true. So, take this with a grain of salt but I didn’t think it was kind of an interesting– It’s an interesting data point and it seems to have been backed up by, whose Atreides Asset Management? You guys know Atreides? No?

Jake: Oh, yeah. Give me a second. Of Gavin Baker.

Tobias: Gavin, Gavin Baker.

Jake: Yeah.

Tobias: So, these are the two tweets. So, Frank Cirillo says that, this is five days ago, so, it’s all moved around a bunch since then. But the point is basically that Spy was down a measly 4% from all-time highs, but at the same time, we’ve got 486 stocks out of the 500. However, many there aren’t Spy, down 25% more in the last 30 days. So, we’ve been talking about that a little bit that there has been this. I’ve been seeing it mostly in the growth stocks, there’s a big crash, but that’s clearly like that’s everything if it’s 496, everything’s been really beaten up. You still there, Bill?

Bill: Oh, I’m here. I’m crying.

[laughter]

Bill: I’m crying as you are saying this. I don’t know all of them.

Tobias: Gavin Baker added that in 2000 or in the run up for the dotcom, the whole market– the index was held up by two stocks, and so, he’s like the fact that it’s four stocks, he says, it’s pretty [laughs] basis.

Jake: Robust now.

Tobias: At the moment, it’s four stocks that are keeping others like responsible for 70% of the performance over the last, whatever, six months, 12 months, something like that.

Jake: That’s crazy.

Bill: It’s twice as much.

Tobias: It’s not narrowed down yet. What is it finally narrowed down to Google and Microsoft, last who is standing?

Bill: Tesla.

Jake: Apple.

Tobias: Tesla. [laughs] I mean, why not? It is funny that through that whole sell off Tesla didn’t really get binged up that much until like maybe Friday.

Jake: That’s an enigma to me. I don’t– No idea what’s going on there. Makes [crosstalk]

Tobias: What else can you do? You just kind of observe at this point like, it’s absolutely baffling to me.

Jake: It is. Wish everyone luck.

Tobias: Yeah. I got nothing else to say but I don’t know.

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