00:00Four-day move, potentially a four-day slide on the S&P 500. Talk to us about that churn beneath the surface. Is there something concerning, maybe something encouraging into year-end?
00:11Maybe a little bit of both, John. And this churn story is not a new story. If you go back to the April 8th closing low and just look at index-level performance, in the case of the S&P, at the index level, the maximum drawdown is only about 5%.
00:27And that was actually back in April when we had a little bit of that retest after the pretty ugly first week in April. Since then, the market's obviously been up significantly.
00:37However, the average member within the S&P 500, just since the April 8th closing low, has had a 17% average drawdown. And in the NASDAQ, over that same period of time, the average member has had a 39% drawdown.
00:51So there's already been a lot of churn under the surface. It's just been masked when you've had these mega-cap-driven components of the rally. You don't see the churn under the surface.
01:01That could continue. That said, that also provides opportunity and maybe one of the reasons why, as you see a bit of a pullback in some of the prior high flyers, there's money finding its way into areas that had been less loved.
01:13You know, health care and energy is two examples of that.
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