A Wall Street firm studied every crash over the past 100 years — and concluded that the unusual performance of 7 tech stocks is masking the risk of a prolonged meltdown
The spectacular performance of these seven companies is "leaving an impression of the March sell-off as if it were a mere blip in the still roaring bull market of yesteryear," said Andrew Lapthorne, the global head of quantitative research, in a recent note.
The historical script derived from these severe episodes includes a crash in the equity factor that prizes the best-performing stocks — also known as momentum — after a market bottom. Defensive stocks that offered protection on the way down also fell out of favor historically as investor money rotated to cyclical companies that benefited from the recovery.
Lapthrone further isolated crises that bear some semblance to the ongoing one in order to find out whether any major differences exist. This time, investors' alignment has largely been to the big tech stocks that are benefiting from remote work and communication — not necessarily those traditionally tied to economic recovery.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Tom Brady is selling his highly customized Cadillac Escalade for $300,000 — see inside - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Lire la suite »
Stock market bubble forming, cheap strategy to hedge: Bank of America - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Lire la suite »
UK Parliament voices cash infrastructure concerns - Business Insider - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Lire la suite »
LendingArch is expanding to the US - Business Insider - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Lire la suite »