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level now in three months for the NASDAQ. For more on where all this is heading, let's bring in Professor Jeremy Seagull of the Wharton School, also Wisdom Tree chief economist. We always speak on Fridays. Professor, not normally under this degree of selling uh especially related to one specific group.
What's your takeaway today? Well, first I I'd like to comment on Enthropic. Uh why doesn't it just uh float $30 billion more of stock? that's only two more% of its market value. Then it wouldn't have to tap the bond market. Then it wouldn't have to be non-investment grade and then everyone could buy it.
Um uh you know the the truth of the matter is you know the bond holders only get the downside uh of of a company. If it doesn't come through they take uh they take the hit. Equity holders can take downside but they get that upside promise. So, I think this is a time maybe, hey, you know, don't borrow from the bond market if it's skittish and worried about the downside.
You know, just float a little bit more of equity. But, uh, yeah, I mean, yeah, this has been a brutal week. I I think it's really important to put this in perspective. I mean, the NASDAQ is down 9% uh from its all-time high, which is less than a month ago. That that is still that's called pullback territory.
That's the mildest description of a of a decline. Um the S&P is down 2%. Uh on the broader market, uh the value indexes, Russell value, S&P value are at all-time highs. [clears throat] Equal weighted I think S&P was up 1% today within 1% of its all-time high. Now, I know that you know most of the people watching CNBC are really interested in the tech stocks, the AI stocks.
I mean, that's where the stories are. But hey, there's a lot of other stocks that are not doing badly at all. In fact, doing very well. And I think it's really important to keep that perspective. I mean, respectfully, you got 60% of the constituency of the S&P 500 down 20% or more from their highs. So, yes, we're within three plus percent of an all-time high, but that doesn't tell the full story because if you lift the hood up, the engine looks messy.
Uh, and it's being overshadowed by the shiniest objects in the automobile. I mean, how do we deal with that? Well, that's that's true, but you know, we always a lot of people are saying, "Oh my goodness, I hate so much of the market is indexed today." And they don't have to look under the hood. They say, "Listen, I believe in the market.
I'm buying the market. Uh, you know, I don't I don't care about the churn under the market." Um, yeah, this market could go down more. It's just the rotation. You know, we we talked about this last week and the week before that the uncertainty about AI both for upside and downside has never been greater.
And uh that really tells investors how important it is to be diversified into the nonAI stocks and not forget about them. Um how important it is also bonds which you know now now they've done extremely well over that period. So I mean again you have to think of of the big picture not just one sector.
Now, technology of the S&P I think just entered into correction territory today down 10 11% uh the mildest that you could get. By the way, the technology sector of the S&P I is up 17 from today's level is up 17%. For the year and that's greater than the S&P itself, which is still up what 11 12% which is greater than the historical average.
What I'm saying is yeah, we could get all upset and if you're overlevered, you are really upset. But when I take a look at the entire market and what's going on in the entire economy, uh you know, I I don't feel that this is a start of something that's going to be uh uh a big decline. Hi.
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