According to Kingsview Investment Management’s portfolio manager Paul Nolte, the US stock market looks “a bit shabby” after the main benchmarks exceeded this year’s new highs.
The biggest stocks are again in the lead, while “the brilliance has come from” reopened “trading,” Nolte wrote on Monday. S&P 500 index
finished in 32nd place of all time.
“Generals are setting new all-time records, but troops may not be following it,” Nolte said in a telephone interview on Monday. He explained that small-cap stocks are lagging behind, while the equal weight of the top-heavy-heavy S&P 500 index has begun to slip.
Simple monetary policy has helped heat up US equities, Nolte said, seeing the potential for a 3-7% withdrawal as investors “restore expectations”.
The S&P 500, a capitalization-weighted index with high exposure to technology, has risen about 5.3% this quarter, according to trading on Tuesday afternoon, according to a recent review by FactSet. Invesco S&P 500 equal weight ETF
has lagged behind, with profits for the current quarter so far at around 3.7%.
According to Nolte, the valuation of technical shares is high. “They have set very high expectations for returns” and the price is “perfection at the moment,” he said as many investors continue to see their last year’s results as a “roadmap” and beyond over the next 12 months.
Meanwhile, the S&P 500 and Nasdaq traded slightly down on Tuesday afternoon, according to FactSet data. Dow Jones Industrial Average Index
trading on Tuesday afternoon also saw a decline in blue chip stocks in the US, although not far from closing peak reached 16 August.
U.S. small-cap stocks rose modestly on Tuesday afternoon, but still show third-quarter losses. Russell 2000 Index
has fallen by about 1.6% since the end of June, according to FactSet data.
Investors have warned elsewhere in the US stock market.
sectors that are protective contributions have seen relatively strong returns this quarter, Matt Bester, investment manager at Lockwood Advisors at BNY Mellon Pershing, said in a telephone interview on Tuesday. Some of the hottest U.S. stocks since late June are in those sectors, suggesting an economic cooling, The Wall Street Journal reported August 29
“So you can see a little more protection in the markets,” Forester said. “There are concerns about what future growth will look like.”