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Phil Rosen reports that the S&P 500 index has begun to outperform the equal-weight RSP after trailing it throughout the year.
This shift comes as the broadening trade loses momentum and investors adjust their positions in anticipation of higher interest rates, climbing commodity prices, and an increased focus on AI leadership.
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Earlier this year, Phil Rosen reported that the S&P 500 outpaced the Russell 2000, which had gained nearly all of its five-year rally in just one year according to his analysis. Separately, Rosen noted that only 27 firms in the S&P 500 were trading above 40 times forward earnings, a valuation level last seen during market downturns in 2020 and 2022, as detailed in a recent article. These observations reflect recent shifts in index performance and company valuations.