Yardeni Research Sees Signs of Bull Market Amid Shift to SMID Stocks
- Ed Yardeni notes a shift in market momentum towards small and mid-cap (SMID) stocks.
- The S&P ratio indicates a peak at the end of last year, reducing bubble risk.
- Yardeni’s firm has underweighted the “Magnificent-7” tech stocks for the first time in over a decade.
- SMID stocks have outperformed large caps recently, although this trend may not be sustainable.
Yardeni’s analysis suggests that increased competition among major tech firms is reshaping market dynamics. The historical dominance of these companies is challenged as they enter a competitive “Game of Thrones” scenario, particularly influenced by advancements in AI technology. This shift could signal a broader market recovery beyond just tech giants.
Overall, the current trends indicate a potential broadening bull market rather than an imminent bubble burst, as evidenced by recent performance metrics. (Source)
