In our first webcast of 2026, we review market conditions from a top down perspective and note improving breadth across global equities. The percentage of stocks in established uptrends has been rising, and the equally weighted S&P 500 making new highs indicates broader participation beyond the largest companies. Leadership has shown signs of rotation toward economically sensitive areas such as financials, industrials, materials, and select international markets, while mega cap technology has been less dominant.
We observe continued strength in commodities and precious metals, with gold and silver showing sustained relative performance compared with bonds, and energy equities remaining resilient despite volatility in oil prices. Within technology, dispersion persists, with software and cybersecurity lagging while semiconductors have shown recent improvement. Overall, current conditions reflect broad equity participation early in the year, underscoring the importance of monitoring leadership, breadth, and risk conditions as markets evolve.
This Weeks Key Takeaways:
- Market participation is broadening
Breadth is improving, with the equally weighted S&P 500 confirming new highs, suggesting capital is being put to work across more stocks rather than concentrating in a few leaders - Leadership is rotating beyond mega cap technology
The NASDAQ is no longer the sole driver, while non mega cap stocks are contributing more to market gains, pointing to a healthier and more diversified equity backdrop - Global markets are attracting increased attention
Developed and emerging markets are showing improving relative performance, supported by a softer US dollar, which can encourage capital flows outside the US - Precious metals are being treated as long term assets
Gold and silver are viewed as strategic portfolio holdings rather than short term trades, supported by central bank buying and concerns around inflation relative to bonds - Energy equities are acting better than oil prices
Canadian energy stocks, including XEG, remain in uptrends despite oil volatility, while recent Venezuela headlines have not yet materially changed market behavior
Dispersion within technology remains important
Software and cybersecurity have lagged, while semiconductors have started the year strongly, highlighting the need for selectivity within AI related exposure