付鹏 Says S&P 500 Drawdown Split Could Lift Market Volatility

U.S. stock volatility could rise sharply if the S&P 500’s largest members start to fall after supporting the index while many other shares retreat, 付鹏 said. His warning centers on the difference between drawdowns in the equal-weighted S&P 500 and the usual market-cap-weighted index. The standard index gives its biggest companies more influence, so their strength can mask declines across a wider group of stocks. 付鹏 said passive investment and concentrated holdings have helped keep heavyweight shares elevated. Many other stocks have undergone deeper technical pullbacks, leaving the broad index looking steadier than the market beneath it.

Source: TokenPost