Russ discusses the surprising strength in momentum stocks, and why it may continue.
While the market has staged a spectacular and unanticipated rally, looking at the broader indices can be somewhat misleading. Year-to-date, the S&P 500 Index is still down -15%, but large cap tech and healthcare indices are down 3% or less. At the same time, small caps and energy, down -26% and -43% respectively, are still stuck in a brutal bear market.
Most investors are aware that much of the differential is a function of growth versus value. However, not all the divergences