Stock Market Forecast: Investor Sentiment Shifts Towards Neglected Stocks Amid Expected Fed Rate Cut in Ongoing Bull Market

Money | July 13, 2024, 9:53 a.m.

In the current financial market, there is an unprecedented bull market characterized by extreme superlatives and unique historical events that suggest a truly extraordinary period in stock market history. Last Thursday, 87% of S&P 500 stocks outperformed the index itself, marking the largest percentage in history as reported by Goldman Sachs. This comes after a period in which the fewest stocks in the benchmark had managed to surpass the S&P 500. The profound concentration of market value in a small cluster of the largest stocks has led to significant divergences and unusual market movements. The ongoing bull market, now 21 months old, has defied historical norms and is the only one, at least in the past 70 years, to have begun with the Federal Reserve tightening monetary policy. As market dynamics continue to exceed historical bounds, investors are advised to respect the sturdy uptrend while remaining cautious of potential shifts in market conditions.