Home / Business and Economy / Nearly Half of US Stocks Act Opposite to Market
Nearly Half of US Stocks Act Opposite to Market
22 Sep
Summary
- Almost half of US large-cap stocks exhibit negative beta behavior.
- This stock behavior is similar to the dot-com bubble era.
- Mega-cap tech stocks have a higher beta than other stocks.
An increasing number of US large-cap stocks are exhibiting negative beta, meaning they move independently of the overall market trend. This shift, now affecting nearly half of these stocks, is drawing comparisons to the Tech Bubble period.
Goldman Sachs notes this sharp rise in stocks that 'zag' when the market 'zigs.' This trend is significantly influenced by the concentration of market capitalization in a few mega-cap tech companies. These leading stocks currently possess a beta of 1.23, contrasting sharply with the lower beta of 0.87 observed in the remaining S&P 500 stocks.
Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
