Most of the stock market has been in a bear market since May despite S&P 500 highs.

Since May, most stocks in the market have been in a bear market, with 60% of S&P 500 stocks down over 20% and 87% down at least 10%, even as the S&P 500 index stays near its highs due to mega-cap strength. Smaller and mid-cap stocks, especially in the Russell 2000 and S&P 400 Midcap, are struggling, while growth stocks show relative strength. The analyst recommends focusing on selective stock picking in small and mid-cap stocks and targeted ETFs like the REX Drone ETF, anticipating Department of Defense spending to drive growth. This insight is shared with members of a private investing community for more detailed strategies.

The iShares Russell 2000 ETF (IWM) is trading at USD 278.62 with a slight 1-day decline of 0.11% as of Oct 12, 2026 20:02 WIB on Pluang. This aligns with the news highlighting struggles in smaller and mid-cap stocks, including those in the Russell 2000 index. Despite the broader market's mixed performance, IWM's market cap stands at $78.74 billion, reflecting its significant presence among mid-cap investments.