The road to success in S&P 500 stocks has slowed over the past several weeks, but it's a speed bump, not a dead end.
"The recent slowdown [over the past couple of weeks, falling more than 2-percent over the past nine sessions] largely was just the market correcting itself a little bit due to short term evaluations."
So says wealth strategist and Your Dedicated Fiduciary founder Vance Barse, adding that "the recent pullback, especially in equities, is driven largely by a simple, what we call a 'retracement,' given the year-to-date overvaluation and extended stock market performance.
"Y'know it's interesting, the stock market is not the economy, and I can't emphasize that enough, but when I look at year-to-date performance of the S&P 500, I think a lot of people forget that upwards of almost 50-percent of the S&P 500 is comprised of the big tech and AI trade.
"Listeners who remember the 'dot-com' era, and I don't mean the bust, I mean the boom leading up to it, remember all of the optimism that was baked into equities at that time -- there are many similarities now," Barse says.
But there's also a great difference: "what we're seeing is that profits continue to drive price, and so far so good -- and that's been valued-in to today's equity market valuations.
"So this largest recent 'hiccup,' if you will, was just the market correcting itself just because of those high evaluations," Mr. Barse says.