![]() ![]() What’s interesting about the charts is that each spike in the number of stocks generally coincides with a market correction or crash but it’s not uniform across the major indexes. And yet, the Russell 2000 is only down about 12% year to date. Of those 700 stocks, most of them reside in the Russell 2000 (the smallest 2000 companies in the Russell 3000). Despite only being down about 10% year-to-date, almost 700 stocks in the index have fallen 50% or more from their highs. The Russell 3000 does a good job of hiding it too. Only 9 of its 500 constituents have crashed in the past year. Only 8 stocks in the Nasdaq 100 have fallen 50% or more from their highs in the past year. Which probably explains why over 75% of stocks down 50% or more from their 52-week highs trade on the Nasdaq.īut the Nasdaq 100, which tracks the 100 largest Nasdaq stocks, tells a different story. In fact, over half of those stocks are concentrated in the technology and healthcare sectors. The point stands that a portion of the market has been hit hard over the past year. The last time we saw numbers anywhere close to that was March 2020 and, prior to that, the 2008 financial crisis (there’s no guarantee it reaches those heights). As the chart below shows, that number currently exceeds 2,000. listed stocks that have declined 50% or more from their 52-week highs. Major market indexes generally do a good job of tracking “the market” but they don’t always tell the whole story.įor example, if you only keep track of the S&P 500, you’re probably oblivious to the increasing number of U.S. ![]()
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