The S&P 500 dispersion, which measures the gap between the volatility of individual stocks and the index itself, has surged to 24.5 points, the highest EVER.
This means the average stock has seen ~25 points more volatility than the index over the last month.
This comes as software, private credit, CLOs, wealth management, and logistics have all been swept up in selloffs.
The S&P 500 has barely moved over the same period.
Interesting how the S&P itself barely moves while the underlying stocks are all over the place. Shows there’s a lot of hidden turbulence beneath the surface, definitely not a calm market even if the headline numbers look stable.