Sam Ro

A stock can only go down by 100%, but there’s no limit to how many times its price can multiply going up. This phenomenon has been on full display with the rise of AI-hardware giant Nvidia Corp. (NVDA). Some are now concerned about NVDA and other big-cap tech names dominating the market. But the general concept of a minority of names driving the bulk of stock market returns is nothing new, writes Sam Ro, editor of TKer.co.

Is the stock market up a lot? Sure. This bull market, which started in October 2022, has seen the S&P surge 48% in just 19 months. It’s been a move that’s had Wall Street’s top market forecasters scrambling to revise up their price targets. At the same time, this bull market hasn’t been unusually strong, advises Sam Ro, editor of Tker.co.

Financial advisors will often recommend clients allocate outside of the US by investing in non-US stock markets. This can potentially help investors better diversify their portfolios. But even if you only invest in US stocks, it doesn’t mean you’re not exposed to overseas economies. Plus, the US market is performing best, notes Sam Ro, editor of Tker.co.

Productivity has been improving, and that’s a good thing. Not only does it mean employers are getting more output per worker, it also helps keep inflation tame. Better productivity is also good news for the stock market as it acts as a tailwind for profit margins, which is good for earnings growth and it may justify higher valuation premiums, counsels Sam Ro, editor of Tker.com.