The Market Is Broadening. That Changes the Leadership Test
The Market Is Broadening. That Changes the Leadership Test.
For years, the S&P 500 felt like a one-story market. A handful of mega-cap tech names drove the narrative and most of the returns.
But the fourth quarter of 2025 saw a subtle shift. The equal-weight S&P 500, a proxy for the “average” stock, has outperformed the cap-weighted index since late October.
And earnings expectations for 2026 are rising across many sectors. It’s not just concentrated in tech.
Why that matters?
In narrow markets, a few companies and their management teams can carry the index, while weak execution elsewhere hides in the shadows.
As markets broaden, leadership quality gets tested everywhere.
What does this shift mean for markets more broadly?
Investors will start rewarding earnings results over storylines, and operating performance over thematic exposure.
Leadership teams with clear priorities and tight execution will separate themselves from the pack.
This isn’t just a market message. It’s a leadership message.
In a broad market, what leadership behavior tells you a company will outperform its peers on fundamentals, not just ride a theme?
🔗Source: S&P 500 Leadership Showing Signs of Broadening Beyond Tech
