2024-07-24 16:30:51 ET
Summary
- The market has seen some significant sector rotation recently and increased volatility from the NASDAQ.
- Still, the major indexes remain near all-time highs despite myriad concerns around equities and the economy.
- Three of these problems seem intractable, and investors are significantly underestimating their negative impact on the economy and the markets in the quarter ahead.
- These huge economic/market challenges are highlighted in the paragraphs below.
Back on July 3rd, I posted an article entitled “ Market Breadth Has Become Beyond Problematic .” In it, I chronicled just how overvalued the Magnificent Seven and Big Tech had become, and a sector rotation was long overdue. The piece proved prescient, as the market has provided investors a massive sector rotation over the past ten days. On Thursday, July 11th, the NASDAQ (COMP:IND) lost two percent on the day, while the Russell 2000 (RTY) surged over three percent. This was the largest daily divergence between the two indexes since 2001 to put in perspective. On Wednesday, July 17th, the tech-heavy index had its biggest one-day sell-off since 2022....
Read the full article on Seeking Alpha
For further details see:
3 Intractable Problems For The Economy And Markets