The following is another example of the broader range of content you can expect to find at my soon-to-be-launched website, Panzner Insights (though it seemed to be a good fit for Financial Armageddon, too):
There has been a changing of the guard with respect to which style has performed best when investing in companies of a certain size since the overall market rally began on July 1st.
During the early stages of the move, small cap growth shares outperformed their value-category counterparts by a notable margin; since late-July, however, things have gone the other way. In contrast, large cap growth languished early on, but has outpaced its value category counterpart over the past six weeks.
- hedge funds and other institutions that had been on the sidelines during the early stages of the run-up were forced to jump in and try to play catch-up by buying the more volatile (but more liquid) large cap names (i.e., growth);
- small investors and others who tend to focus on small cap issues have become more defensive amid deteriorating economic and industry-specific conditions.
If true, this assumption would tend to support the notion that the recent strength in the market has been driven by towel-throwing and performance-chasing rather than a fundamentally-inspired change of heart.
In other words, it's the sort of activity you would expect to find near the end of a move, rather than at the beginning of another leg up.
Coming soon: Panzner Insights,
an exclusive members-only website focused on
markets, economics, and geopolitics
If you are interested in learning more, please click here to open a form where you can fill in your name and email address (or alternatively, shoot me a quick email with the details), and I will be in touch...
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