Insights

In our last quarterly letter, we preached that investors can expect the stock market to deliver strong returns over the long term. It appears the market didn’t want to make anybody wait very long. Equity markets again delivered very strong performance in the recent quarter with the benchmark S&P 500 Index returning 10.6%. 

Not only did the headline index deliver a strong return, but most rank-and-file constituents participated in the updraft as well. The chart atop the following page shows the percentage of S&P 500 stocks above their 200-day moving average. This measure of participation is called market “breadth” and is usually a sign of a healthy market.