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Don't know how well this is going to work out for me, but RSP (equalweight SPY) making a new all time high yesterday by 2 whole points over previous high suggests to me this is a sector rotation instead of the start of a full blown bear market
debaser wrote:Don't know how well this is going to work out for me, but RSP (equalweight SPY) making a new all time high yesterday by 2 whole points over previous high suggests to me this is a sector rotation instead of the start of a full blown bear market
Tend to agree, looks like funds want out of the high flying tech stocks for a bit.
Probably wrong, but my simple idea is crowding out at credit market is bad news for buyback stocks and good news for earned dividend (value) stocks. Of course buyback using new debt stocks will take off once Fed increases its monetarization of the Federal deficit, but for now not enough money to finance Apple and US Government.
Second risk to the market is market and bonds both going down will force Bridgewater and clones to "deleverage" especially (as the experts are pointing out) if volatility increases.
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More than 100% measured move down so probably there'd be a 3rd leg down.
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