2023-11-13
In my recent take on the economy, I highlighted a noticeable contrast in the strength of certain companies within the indices. Specifically, the robust performance of tech giants like $NVDA or $MSFT stood out. The chart above illustrates a comparison between the S&P500 and RSP, the Invesco S&P500 Equal Weight ETF. Unlike the S&P, where company weightings are market-cap-based, RSP maintains equal weightings for all companies.
It's pretty evident who is fueling this rally. The S&P500 has surged by 14% since the beginning of 2023, whereas the RSH is on a bit of a dip at -0.75%. So, yeah, stay cautious.
Thanks,
Finn