Beware The Crowd: One Bank Warns On Rebalance Risk

On November 29 and continuing during the subsequent three or four sessions, investors got a taste of what happens when there's a sudden (possibly factor flow-driven) rotation out of the winners and into unloved names and sectors (of course "unloved" was a relative term in 2017). The tech selloff that started on November 29 eventually culminated in the worst 5-day underperformance for the Nasdaq 100 versus the S&P since 2009. The impetus was initially written off to investors rotating into t