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Why Nvidia, Broadcom and other highflying stocks are especially risky now

1. October's crash risk is statistically equal to other months. 2. Momentum sectors face heightened crash risks over the next two years. 3. Industries outperforming the S&P 500 have increased probabilities of crashes. 4. Independent power producers have exceeded the S&P by 200%, indicating significant risk. 5. Semiconductors have outperformed the S&P by 128%, heightening crash concerns.

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FAQ

Why Bearish?

Industries like energy and semiconductors show high crash risks, which can dampen investor sentiment and confidence in the broader market, including the S&P 500.

How important is it?

The article illuminates significant crash risks in outperforming sectors, influencing S&P 500 investor behavior and market dynamics.

Why Long Term?

The risks identified affect the two-year outlook for outperforming sectors, which can substantially influence S&P 500 mouvements over time.

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