Concept

Market breadth

How many members of an index are taking part in a move, rather than a handful of large ones. We measure it as the share of S&P 500 companies trading above their own 200-day average price.

Why we track it

A rally where two-thirds of members are above their 200-day average is a different animal from one carried by ten companies.

Asset allocationHow a portfolio is split among kinds of investments, such as stocks, bonds and cash.
BacktestingTesting an investing rule on historical data to see how it would have performed before putting money behind it.
Basis pointOne hundredth of a percentage point (0.01%), often written bp.
Bear marketA fall of roughly 20% or more from a recent peak, usually over several months.
Bull marketA long stretch of rising prices across a market, often dated from a 20% rise off a low.
Business cycle stagesThe economy’s long rise and fall: years of growth, a slowdown, sometimes a recession, then recovery.

Why we track it

Related terms