Quick Read
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Charlie Bilello says “Some sanity has returned to the market” as QQQ plunged 10% in a week and SPY dropped 5%.
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Bilello flags value stocks up 24% this year while growth falls 6%, with NVIDIA and Palantir 26% and 27% below their highs.
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Bilello calls sell-offs “the price of admission” for earning higher equity returns than bonds or cash over the long run.
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The most speculative corner of the stock market has taken a hard hit, and a market data voice on X says that’s a healthy sign. On the morning of November 6, 2026, Charlie Bilello of Bilello Capital posted this update: “High Beta Stocks, High Momentum Stocks, and Meme Stocks are down 21%, 27%, and 57% from their 2026 peak mania levels. All are now underperforming the S&P 500 on the year. Some sanity has returned to the market.”
Those drawdowns of 21% for high beta, 27% for momentum and 57% for meme stocks, as compiled by Charlie Bilello, came to a head during one of the harshest stretches of the year.
Why Bilello Sees Sanity After the November 5 Sell-Off
Bilello noted that the S&P 500 fell 4.4% on November 5, its biggest one-day decline since April 4, 2025. He also said the index sat 6% below its October 6 peak, which he counted as the 34th correction of more than 5% since the March 2009 low. The Dow fell, and the Nasdaq entered correction territory as fears of an AI crackdown after the midterms and worries about AI data center spending hit tech shares (Reuters, NPR, Fortune).
Tech absorbed the worst of it. The Invesco QQQ Trust (NASDAQ:QQQ) fell 9.55% in the week ended November 5 and 14.82% over one month. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) lost 4.73% that week. Friday morning brought a pause as dip buyers stepped in (Bloomberg), with QQQ up 1.92% and SPY up 0.94% in early trading.
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What High Beta and Momentum Stocks Actually Are
Beta measures how much a stock moves relative to the overall market. A high beta stock swings harder than the index in both directions, so it beats the market in rallies and falls faster in sell-offs. Momentum stocks are the names with the strongest recent price gains, often bought simply because they have been rising. Meme stocks trade on social media enthusiasm more than fundamentals.
