Average Stock Falls 16%+ From Peak as Market Breadth Weakens
Oppenheimer’s John Stoltzfus on narrowing market breadth, slipping earnings expectations and the U.S. consumer’s health as the average stock drops over 16% from its peak.
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What stands out
John Stoltzfus, Oppenheimer’s chief investment strategist, highlights that the average stock has fallen more than 16 percent from its peak while market breadth is narrowing, meaning a shrinking number of stocks are driving the market’s gains. That observation matters because headline indices can look healthy while most individual companies are substantially lower, and Stoltzfus ties the divergence to slipping corporate earnings expectations and a consumer that may be losing momentum.