QQQ - A Historic Capital Rotation Is At A Fever Pitch
- For several years now, I have been writing about a historical capital rotation in progress.
- This historical capital rotation is now at a fever pitch led recently by energy prices that seemingly ratchet higher daily.
- One glaring example and contrast is the Energy Select Sector SPDR Fund (XLE), which is up 22.2% YTD. Meanwhile, the Invesco QQQ Trust (QQQ) is down 11.1% YTD.
- Similar to the aftermath of the November 2020 through March 2021 leg of this historical capital rotation, there will be pauses that refresh in the aftermath of large absolute and relative moves.
- Bigger picture, though, there is a lot of room to run in a historic reversion-to-the-mean trade.
For further details see:
A Historic Capital Rotation Is At A Fever Pitch