Investors are shrugging off fears of a recession and buying up stocks in the hope that recent gains will sustain into a bull-market run.

Are we out of the woods? Possibly. Yet a closer look under the hood market is causing some investors to do a double-take.

Just seven companies (and eight stocks) have accounted for more than the S&P 500’s total 9.65% return (price gains and reinvested dividends) across the first five months of 2023.

These seven firms are making equities look hot again and, going the way they’re going, the market to deliver a handsome annualized gain of at least 23%. Take those seven out of the equation, and the S&P is actually down slightly for the opening five months of the year.

It’s what veteran markets reporter Alan Sloane calls the “skinny bull” – a tightly-concentrated burst of growth shooting up through an otherwise lackluster market.

This market is no muscle-bound stud, but can it keep charging? “I believe the skinny bull has legs, for now,” Yohance Harrison, BFA, CRPC, and founder of Money Script Wealth.

Hold on ‘Buckeroo

“The latest disaster we avoided was the debt ceiling. Since its resolution, there hasn’t been a real emotional headline to spook investors. Unless a new catalyst emerges, it could be smooth sailing for a little while.”

Whether the bull “has legs” depends on a variety of factors, according to Jorey Bernstein, CEO of Bernstein Investment Consultants. “If the companies leading the charge are fundamentally strong and can continue to deliver impressive growth, then it may be sustainable.

TOP Dollar Investor

Swipe Up For The Rest of the Article