- Since the end of last year, the "value" rotation finally did get underway, with the energy sector leading the charge.
- Historically, when rotations to "value" have occurred, it has accompanied significant market reversions and a break of the previous "bullish" psychology.
- The accompanying destruction of capital pushed investors into requiring a "margin of safety."
- The problem with the current "value" trade is there is very little, if any, "margin of safety" in the companies investors are piling into.
- The end of the value trade may be near as investors push prices beyond economic growth expectations.
For further details see:
Technically Speaking: Is The End Of The Value Trade Near?