S&P 500 trades near record high: Expect some chasing into year-end
With the S&P 500 (^GSPC) gaining on the post-election rally, some portfolio managers, whose performances are often measured compared to the index, are scrambling for gains in the final stretch before year-end. Ritholtz Wealth Management chief market strategist Callie Cox joins Market Domination Overtime Hosts Julie Hyman and Josh Lipton to discuss her market outlook for the rest of 2024. "A lot of people on Wall Street talk about performance chasing or those portfolio managers that are judged on how well their stocks perform every year relative to the S&P 500 or another benchmark. It's becoming crunch time for them," Cox says. "They have to outperform a benchmark that has risen about 25% this year and a benchmark in which [only] about 30% of its stocks have done better than the index," she explains. "Right now, portfolio managers are having a really tough year because their performance is based on how much better they do than the S&P 500, not necessarily how well the S&P 500 does," the strategist says, adding, "There could be some chasing into year-end, some buying stocks to push performance a little bit higher in these funds." To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Naomi Buchanan.
