Stocks are in a correction even if S&P 500 doesn’t show it
Josh Brown said Tuesday the stock market is going through a correction, even if the indexes have yet to reflect it. “We’re actually undergoing a market wide correction right now,” Brown said on CNBC’s ” Halftime Report .” “The reason why people don’t know it is because it hasn’t hit the Mag Seven names, but that’s literally what’s taking place.” Stocks are near all-time highs, with the S & P 500 last month having topped 6,900 on an intraday basis for the first time ever. The broader index is higher by more than 15% year to date. However, the headline advance obscures the weakness below the surface, a growing concern for investors. The CEO of Ritholtz Wealth Management pointed out that more than 30% of the S & P 500 is more than 20% below their 52-week highs, suggesting many stocks are actually in a bear market. .SPX YTD mountain SPX year to date At the same time, 6.5% of the S & P 500 is actually at 52-week lows on Tuesday, he said. The market’s internal weakness bubbled to the surface slightly on Tuesday. The S & P 500 lost more than 1% on the day, pressured by weakness in AI names. Still, Brown said he remains confident in the overall market. He said some of the excess will have to be squeezed out of the market in order for it to be set up for a year-end rally. “This is what healthy bull markets do,” Brown said. “They wick that enthusiasm off the top and reset. And I think it’s good. I think this is what you should want if you want to stay constructive here.” DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC” TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
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