Market environments are driven not just by industry preferences, but also by a bias toward the very largest companies. We have developed a new set of groups composed of the 10 largest companies from each sector. With several of these baskets sporting positive rankings, we felt a closer look was in order.
“Bull markets climb a wall of worry,” the old saying goes. We’ve heard that piece of wisdom (or imagined we heard it) every week since early summer. But we doubt it was meant to apply to today, when the paralyzing fear is not of potential loss, but of foregone upside (i.e., fear of missing out, or FOMO).
The recent move by the S&P 100 Index (OEX) above its historic March 2000 high prompted us to take a closer look at the turnaround potential of this perennially underperforming Mega Cap index. Remember, a Large Cap leadership cycle has been in force since April 2011—with the trend strengthening the last few months. What are the prospects for the biggest of the Big Caps?