Blue Chips Hogging the Spotlight on Wall Street

By Currier, Chet | THE JOURNAL RECORD, August 3, 1998 | Go to article overview

Blue Chips Hogging the Spotlight on Wall Street


Currier, Chet, THE JOURNAL RECORD


NEW YORK -- On Wall Street, they're calling it one of the worst cases of "bad breadth" in modern memory.

A few big-name stocks have been strong through the early summer, carrying some of the market indexes to new highs. But thousands of other stocks, particularly those of smaller companies, are languishing.

What analysts call market breadth -- the number of advancing stocks versus the number declining -- struggles along way behind the averages' progress. That explains why big bull-market gains aren't showing up in the portfolios of many individual investors or mutual funds, except those funds that specialize in large growth companies.

Sign of the times: Standard & Poor's reports that just 15 elite stocks -- names like Microsoft, Intel, General Electric and Coca-Cola -- now make up 25 percent of the total market value of S&P's 500- stock composite index.

Thanks to stalwarts like these, the S&P composite index boasts a return of better than 15 percent for the year to date, while broad indexes of smaller stocks barely show a gain at all or even have slipped into negative territory.

"Probably the most frustrating aspect of the present market environment is its narrowness," says Byron Wien, investment strategist at Morgan Stanley Dean Witter.

By some measures, the trend in favor of consistently growing blue chips, and away from smaller companies and undiscovered value stocks, has been in force for three to four years now.

It has gone on so long it has turned into a movement of its own, complete with a name -- "momentum investing" -- and a growing body of commentary to explain why it has occurred and how it may continue indefinitely into the future.

Investors who follow the trends in the market from day to day or week to week are left with a dreadful sense that anyone who sticks with small stocks, or value stocks, instead of blue-chip growth, is committing some grave error in judgment. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Blue Chips Hogging the Spotlight on Wall Street
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.