Goldman sees a bear market hiding beneath the S&P 500’s high

Goldman Sachs’ Bobby Molavi estimated that 60% of S&P 500 companies were in bear-market territory, generally meaning their shares had fallen 20% or more from their own recent peaks. Yet the index itself sat only about 3% below its record high. That apparent contradiction is possible because the S&P 500 gives its biggest companies the greatest influence: a relatively small group of giant stocks can keep the benchmark elevated while many other members decline. The estimate does not by itself predict an index-wide crash, but it is a warning that the headline index may be giving a healthier picture of the market than many individual investors are experiencing.