tech/consumer stocks

Weekly Update

Market Rally Continues To Broaden – A Very Positive Sign

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Published October 18, 2024

 

The hallmark of a strong market rally is sector rotation. Over the past couple of months, we have seen just such rotation as the rally baton gets passed from one sector to another, then back again. After months of leadership from the Magnificent Seven tech/consumer stocks, this summer saw the rally baton passed to almost all the other market sectors – everything from industrials to typically defensive consumer staples stocks found buyers.

The past couple of weeks have seen some new, and important, faces join the rally parade. (more…)

Weekly Update

The Stock Market Shudders as the Fed Starts to Shift Gears

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Published June 18, 2021

This year’s stock market has been all about rotation with money moving into value stocks and out of growth stocks. The narrative has been that rising inflation would push up interest rates. The hike in rates in turn raises the denominator of the classic stock price valuation (e.g. earnings/interest rates) which devalues high-flying growth stocks. The beneficiaries of this narrative have been cyclical sectors like materials, industrials, and energy. This week that narrative took a beating. (more…)