Does market breadth matter? - 7IM

The textbook says a stock market rally is phony if the market breadth isn’t healthy.

Market breadth is what goes on in the stock market. It looks at the number of stocks that are advancing or declining within an index or an exchange.

Ben Kumar, Investment Manager at 7IM believes it is the narrative than matters and not the breadth. The rally in the US stocks is mainly based on the tech stocks, but Kumar does not see it as a reason to fear.

Kumar also says a 4% or 5% drop in oil prices in a single day no longer scares investors because the narrative has changed.

Watch the full segment to know Kumar’s take on whether the US stocks would continue to scale new heights.