Not the Beginning, But the End

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.

While its hard to say for sure what accounts for the divergence, one theory is that:

• 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.

~~~~~

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Comments

[Tom]

Yep, looks like the end from where i'm sittin' too:

http://www.dailymail.co.uk/news/article-2205925/CDC-says-West-Nile-cases-went-19-cent-WEEK-3-142-reported-virus-U-S.html#ixzz270YkAedE

CDC says West Nile cases went up 19 per cent in a WEEK with 3,142 reported to have virus in U.S.

(Just another knock-on effect of climate change that we're STILL doing nothing about.)

http://www.dailymail.co.uk/sciencetech/article-2205509/Cancer-row-GM-foods-French-study-claims-did-THIS-rats--cause-organ-damage-early-death-humans.html

Cancer row over GM foods as study says it did THIS to rats... and can cause organ damage and early death in humans

(Monsanto at it again, and remember - they don't have to label anything, so you have no idea what you're eating unless you're very vigilant.)

http://edition.cnn.com/2012/09/20/opinion/china-japan-dispute-kingston/index.html?hpt=hp_c1

Dangerous Rocks: Can both sides back off peacefully?

(Japan and China added to the list of countries about to come to blows)

http://washingtonexaminer.com/chapter-x-obama-brings-chicago-politics-to-washington/article/2508417#.UFtSqbJmSIQ

Obama brings Chicago politics to Washington

(Don't think just because Mitt's campaign is imploding that Obama is a shoe-in - he's a Republican, just not a far-right, bat-shit crazy one! He's done far more for corporate America, the war machine and Wall Street, including the TBTF banks, than he let on during his campaign. Wait til all the people that couldn't afford healthcare get to pay the new tax BECAUSE they can't afford it! He's the worst president since Bush environmentally speaking and couldn't give a shit about the former middle class, despite his flowery rhettoric. With those two as the choices i'm voting for Jill Stein from the Green Party. So, if enough people vote like me, we'll either get a real candidate or we may end up with Mitt the shit and his woman-hating, totally off the wall Ayn Rand lovin' vee pee and all!)

Rather than playing in the Wall Street rigged casino, why don't we just take bets on the next bridge to collapse due to disrepair or the next oil spill location. Oh, i know - which nuclear plant will go Fukushima on us next!? Some fun, eh kids?

[Alex Gold Goldman]

Gold Price Chart – Live gold spot prices

http://www.sh1ny.com

dr. Alex Goldman
http://www.sh1ny.com Co-Founder