The top 10 stocks contribute 54% of market returns since January 2021, with the Magnificent Seven driving significant risk exposure for investors.
Despite the ongoing uncertainties in the market, including geopolitical tensions and tariffs, U.S. equities are bouncing back, showing signs of resilience under current conditions.
Within the S&P 500, our High Sharpe Ratio basket contains companies with the highest prospective risk-adjusted returns relative to their sector peers. The basket's median constituent has a prospective risk-adjusted return of 0.9.
The S&P 500’s Q2 resurgence was fueled by expectations for Federal Reserve monetary easing and robust inflows into large-cap tech stocks amid easing U.S.-China trade tensions.