Is market rotation powerful? Investors dumped US tech stocks
Accroding to Bloomberg and Financial times, investors dumped shares in many of the technology companies that surged during the pandemic as the looming spectre of higher interest rates prompted them to buy into businesses more tightly linked to the economic recovery.
Thanks to the new-year bond selloff, Wall Street pros are doubling down on a big stock call for 2022: The leadership of high-growth tech darlings is no more.
A closely watched index collated by Goldman Sachs that tracks the returns of lossmaking tech groups is down 9.8 per cent this year, trailing the 1.4 per cent fall by the benchmark S&P 500.
A closely watched index collated by Goldman Sachs that tracks the returns of lossmaking tech groups is down 9.8 per cent this year, trailing the 1.4 per cent fall by the benchmark S&P 500.
The rotation accelerated on Wednesday in the wake of a warning from the Federal Reserve that a faster pace of interest rate rises could be necessary to tame inflation.
But even after the US stock market fell broadly, investors maintained recent bets on banks, industrial and energy companies whose fortunes are tied closely to the US economic expansion. All three sectors are up for the year so far.
BofA's strategists chose stocks with strong free cash flow and dividend yields they see withstanding inflation. Therefore, they like $Citigroup(C.US$ , $Viacom-B(VIAB.US$ , $Carrier Global(CARR.US$ and $CrowdStrike(CRWD.US$ for Q1.
$S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Bank of America(BAC.US$
$S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Bank of America(BAC.US$
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Mrrichierich : Regardless..we know where the biggest gains are and we’ll continue to play the small Caps no matter how hard they try to scare us outta them!! We follow their short asses so quit shorting the fk outta stuff then we won’t have to squeeze you!!!
Mrrichierich Mrrichierich: More money right now in the market then in our History of being human beings because of retail!! And we ain’t going nowhere!!
eddurbin57 : Retail is only growing, not shrinking and growing not only in numbers but also in wisdom...
71848724 : It’s a cycle. No one thinks Cathy Wood all the sudden became dumb. The growth will come back, sooner or later. And the boring stocks will go back to remaining flat as always.
No Money No Happy : wept
JT-2021 : Overpriced
71043363 : It is just the beginning… most of the tech stocks are overvalued and the whole market is a big bubble these days… just check SPY, Tesla, Apple, Microsoft and many more stocks at the end of 2019 and compare with today…. Just wait and see :)
Too Big To Fail : Gone are the days when they would trick us with such articles to invest in companies that would benefit them. We do our research and invest in companies we believe in or companies we know will make us money. F@&k market sway! Gone are the days when you told us Toys R Us is a not a good company and we believed you. F market sway.
Molly wealth talkOP eddurbin57:
Molly wealth talkOP No Money No Happy:
Would you turn to financial sectors?
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