πππWhile a small group of chips and AI giants are leading the market with skyrocketing prices & pulling the Nasdaq 100 index to new highs, the average stock is actually quietly falling.
This is a rare technical distortion known as a negative market breath divergence. In simple terms, it means the stock market is showing a false sense of health.
How to protect your portfolio:
For new investors, don't let the all time high headlines trick you into excessive risks.
Avoid chasing the peak and be cautious about throwing all your cash into chip stocks that have already spiked.
Lean on Equal Weight Funds : Consider Index ETFs with equal weight $Invesco S&P 500 Equal Weight ETF(RSP)$ . This spreads your risk more evenly.
History has shown that market highs cannot be stabilised by a narrow number of stocks over the long term horizon. A narrow market is highly unstable & may lead to a sharp drop.
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