Excerpt from Barron’s quoting DataTrek’s Nick Colas:
…. “But a recent decline in interest rates and inflation expectations has led to another reversal. The iShares S&P 500 Value ETF (ticker: IVE) has gained 3.7% in the past month while the iShares S&P 500 Growth ETF (IVW) is up 7.7%. In a note to clients on Tuesday, Nicholas Colas, co-founder of DataTrek Research, attributed growth’s recent outperformance to five companies: Apple (AAPL); Microsoft (MSFT); Amazon.com (AMZN); Google’s owner, Alphabet (GOOG); and Tesla (TSLA).
“A sudden rotation into brand-name growth stocks isn’t typically a good sign for markets over the near term,” Colas wrote. Investors took cover in big-cap tech stocks as markets swooned last year, and the fact that money has been flowing back into them lately could suggest people are hitting pause on their reopening plays, before adding to their holdings of more cyclical stocks. Investors may be waiting to see more proof that the recovery will come through, he said”….
Read the full article here on Barron’s!