With much of our equity exposure tilted towards longer duration, “growth” style, equities, the Nasdaq 100 (or represented by the Invesco QQQ ETF) is probably one of the closest indices we could call a benchmark. As seen with the chart below, the past two weeks have been somewhat painful, with the QQQ (purple line) catching down to nearly month-old weakness seen in other indices that are often considered more indicative of overall stock market breadth: Value Line Geometric Index (blue), NYSE Composite Index (white), and the Invesco S&P500 Equal Weight ETF (yellow).
A glimmer of hope for some stabilization in our equity allocation has been that while QQQ has steadily grinded lower this past week, all three of the broader measure seem to have put in an initial bottom already. Time will tell, but perhaps this is a sign of calmer equity conditions ahead.
