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Is S&P 500 Ready to Outperform Nasdaq In Years Ahead?

Published 11/09/2022, 06:06 AM
Updated 07/09/2023, 06:31 PM
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For the past two decades, the S&P 500 has underperformed the Nasdaq as tech stocks have been all the rage.

Growth and innovation have transformed our economy and kept those companies (and stocks) firmly in a position of leadership.

But is tech leadership about to be up-ended?

S&P 500/Nasdaq Ratio Monthly Chart

Today’s chart looks at the long-term monthly relationship (ratio) between the S&P 500 and the Nasdaq. As you can see, the S&P 500 Index has underperformed the Nasdaq for nearly two decades.

But the broad, large-cap index has been outperforming the Nasdaq for several months and the ratio is breakout out of its downtrend channel at (1). This comes after a potential double-bottom formation. Are large caps set to outperform tech stocks in months/years ahead? Stay tuned.

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