market Notches Another Weekly Gain

S.T.A.Y.™ current position for Active portion of portfolio:  BUY – S.T.A.Y. Plus™ 
Continue to be Cautiously Optimistic

Last week the S&P500 made yet another new high but ended the week with a small loss. However, there continues to be a growing divergence between the market rally of the technology sector, especially the AI market, and the remainder of the market. Over the last two months the Mid-Caps and Small-Cap indexes have been significantly lagging the tech-heavy S&P500 and the Nasdaq which is heavily weighted with technology stocks.  The chart with the black background shows the divergence that is currently happening.  The yellow line shows the average of an equally weighted portfolio of all four of the equity indexes that we are invested in: The QQQ – technology, VOO  The S&P500, VO The Mid-Cap index, VB The Small-Cap index.  You can see that the yellow line, representing the results of our equity portfolios is obtaining an equally weighted average of all four of these indexes.  It’s not a matter of trying to switch from one to the other, because there are market periods of time where instead of QQQ leading the pack, VB (Small Cap) could be leading the pack.  By equally weighting into each one, we accomplish obtaining the broad market exposure that is desired regardless of which sector happens to be decreasing or increasing at any given time.  These divergences have tended to consolidate over longer time frames.

The STAY Strategy's four Market Indexes

Weekly S&P 500 Chart (with all-time hi shown)

Monthly S&P 500 Chart (with all-time hi shown)