Is S&P 500 Ready to Outperform Nasdaq In Years Ahead?
Chris Kimble | Nov 08, 2022 05:06PM ET
For the past two decades, the S&P 500 has underperformed the Nasdaq as tech stocks have been all the rage.
Growth and innovation have transformed our economy and kept those companies (and stocks) firmly in a position of leadership.
But is tech leadership about to be up-ended?
Today’s chart looks at the long-term monthly relationship (ratio) between the S&P 500 and the Nasdaq. As you can see, the S&P 500 Index has underperformed the Nasdaq for nearly two decades.
But the broad, large-cap index has been outperforming the Nasdaq for several months and the ratio is breaking out of its downtrend channel at (1). This comes after a potential double-bottom formation.
Are large caps set to outperform tech stocks in months/years ahead? Stay tuned.
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