Equal weighted outperformance
A few days ago I looked at the potential for value to outperform growth. As Bloomberg noted, this month so far has seen the equal-weighted S&P 500 outperform the market cap-weighted S&P 500 by the most in over a decade. This signals a potential reversal in relative performance. Perhaps the era of a few large tech stocks lifting broad indices is coming to an end:
Historical cases in which the market cap / equal weighted ratio dropped -3% in a month usually led to more S&P 500 equal weighted outperformance in the months and year ahead: