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Is This Market Recovery For Real? Separating ‘Genuine’ From ‘False’ Bottoms
US tech stocks are the most crowded trade on the planet. And it's not even close.
In fact, 74% of respondents identified "Long US Tech & Growth" as the corner of the market exhibiting the most crowding in the latest edition of BofA's Global Fund Manager survey.
As the bank's Michael Hartnett notes, that is "the highest reading in FMS history".
By now, investors should be well apprised of the narrative. The surge in US tech (which pushed the likes of Apple and Amazon to record highs rece
Typically in a weak economic environment investors pay up for top line combined with bottom line growth. What is described here fits the historical pattern to a tee. Once the market anticipates a upturn for any reason, financials, industrials, small cap, EM, and other more economically sensitive sectors will benefit disproportionately. In my view we are not there yet. Someday.