Valuable insights on the character of a bull run in stocks can be gained by investigating the companies leading the rally. The table below lists the 10 best performing S&P 500 stocks since the October 3,2011 low. My table shows the market’s biggest winners are among the most speculative—homebuilders, distressed financials, and tech companies. What does that say about the 28% rally in the S&P 500 since the October 3 low? Speculative sentiment is the dominant force in the stock market today. Invest accordingly.
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.