You might have missed it, but there's been some remarkable shifts in the stock market over the past few days.
But some remarkable shifts that took place underneath the surface caught the attention of strategists, and are inflicting severe pain on a number of hedge funds.
In short, there's been a massive rotation away from the best-performing stocks and into those that had been neglected. That is known as a rotation from momentum stocks, or those that have had the wind behind their backs, to value stocks, or those stocks that had been ignored and are considered cheaper.
Goldman Sachs said in a note that the decline on momentum"ranks among the sharpest on record," and Morgan Stanley sent a memo to hedge-fund clients, seen by Business Insider,The sudden and decisive rotation exposes how vulnerable investors have become to swings of this nature, according to Peter Oppenheimer, the chief global equity strategy at Goldman Sachs. In a recent note to clients,
he said the rotation would most likely be short-lived and explained how to align with the longer-term winnersMarko Kolanovic, JPMorgan's global head of macro quant and derivative strategy, identified a pattern within the shift that has happened only twice before. Specifically,, while the same indicator for large companies on the S&P 500 reached its maximal positive reading.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A crazy last 12 hours has put the market inches away from a record: Here's what happenedHere's what investors need to know about what's happening in this rapidly changing U.S. market environment.
Read more »
UAW leader charged with embezzling union funds amid contract talks with Detroit automakersHere's what investors need to know about what's happening in this rapidly changing U.S. market environment.
Read more »
Everything You Need to Know About the Democratic Primary DebatesThe lineups have been set and the rules have been laid out for the third Democratic primary debate
Read more »
The September Democratic debate: Everything you need to knowTop-polling Biden, Warren, Sanders, Harris and Buttigieg will share one stage in Houston after a number of candidates failed to qualify.
Read more »
Here’s Everything You Need to Know About the New iPhone 11Here’s everything you need to know about the new iPhone 11 / RobbReport
Read more »
https://people.comGet the latest news about celebrities, royals, music, TV, and real people. Find exclusive content, including photos and videos, on PEOPLE.com.
Read more »