The themes of weakness noted recently continued through week's end.
* Sector Deterioration - My recent review of sector forcefulness too weakness constitute forcefulness confined to a real express component division of the S&P 500 universe. In the final ii weeks, the pct of Consumer Discretionary stocks trading higher upwards their 50-day moving averages has plunged from over 70% to 30%. The corresponding pct for Financial stocks has dropped from 65% to 28%. Meanwhile, we're soundless seeing 59% of Consumer Staples stocks trading higher upwards their 50-day averages, every bit coin flows expire along to reverberate defensiveness too fears of recession.
* New Flight to Safety? - I've been watching the tax-free bond funds of late, largely because I committed a chunk of long-term portfolio coin toward those. Interestingly, when nosotros had stock marketplace selloffs inwards August too March, at that spot were selloffs with tax-free bonds, reflecting fears of default. During the recent stock marketplace weakness, however, a pose out of tax-free funds accept been making six-week cost highs. We're likewise seeing to a greater extent than or less forcefulness deport through to investment-grade corporates. Even every bit nosotros cost inwards recession, nosotros may hold upwards discounting the probability of Armageddon.
.
No comments:
Post a Comment