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‘Who’ll Stop The Rain’? A Quick Look At One Bank’s ‘The Selling Has Just Begun’ Call
If you think "way" back to three weeks ago, Morgan Stanley "went there" ... they downgraded tech from overweight to equal-weight.
Consensus aside, that seemed justified from a kind of common sense perspective. After all, according to BofAML's monthly global fund manager survey, "Long FAANG" has been the most crowded trade on the planet for six months running (five at the time the Morgan call came out).
Optimism around the market darlings that together accounted for the lion's share of the S&am
Good piece, and the logic is as close to irrefutable as anything gets in today’s market. Just two thoughts:
It’s a tad Trump-like to see that miniscule dip in the growth-value chart as “traction”. Still, all reversals have to start somewhere. AAPL might have a thing or two to say about whether from here the wheels spin or the tread bites into the dirt.
I’ll be curious to see what effect the heavy FANG+ weighting in instruments beloved of the passive crowd might have this time around if/when the ‘smart’ boys turn full-on defensive.