Is S&P 500 Ready to Outperform Nasdaq In Years Ahead?

2022.11.08 19:31

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For the past two decades, the has underperformed the as tech stocks have been all the rage.

Growth and innovation have transformed our economy and kept those companies (and stocks) firmly in a position of leadership.

But is tech leadership about to be up-ended?

S&P 500/Nasdaq Ratio Monthly Chart

Today’s chart looks at the long-term monthly relationship (ratio) between the S&P 500 and the Nasdaq. As you can see, the S&P 500 Index has underperformed the Nasdaq for nearly two decades.

But the broad, large-cap index has been outperforming the Nasdaq for several months and the ratio is breakout out of its downtrend channel at (1). This comes after a potential double-bottom formation. Are large caps set to outperform tech stocks in months/years ahead? Stay tuned.

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