A battle line is opening in the stock market. On one side are professional money managers focused on suddenly stodgy-seeming metrics such as earnings growth. On the other, newbie day traders obsessed mainly with momentum. At least going by who got crushed the least this brutal week, score one for the old guard.
“A lot of hedge funds are playing a longer game and have generally been suspicious of that very strong and quick rally in the market on the belief that something broke in the economy and it’s just not going to be this easy to recover,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. For smaller traders, on the other hand, it’s been “a mania, to go for the stuff that looks the diciest and bet on a high-beta rally.
Their sector tilt also pointed to defensiveness. Holdings in airlines, hotels and restaurants hovered around multiyear lows, while the exposure to the safety of the stay-at-home trade — technology and healthcare — was near a decade high, Morgan Stanley data showed.Mom-and-pop investors, on the other hand, rushed in during the March turmoil. At E-Trade Financial Corp., client activity continued to expand from record levels reached last month.
To Robert Pavlik, the chief investment strategist at SlateStone Wealth, that’s a dangerous sign of chasing momentum regardless of fundamentals.“Retail investors are playing these crazy names and they don’t know what to fear,” Pavlik said. “Why on Earth do you want to buy Hertz? They’ve already filed for bankruptcy. That means equity investors are not going to be left with anything. It’s a nonsense trade.
I always buy when people get scared. I have bank.
Вы делаете мою жизнь лучше
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market live Friday: Dow up 477, Stocks still lose 5% on week, volatility is back“The economy isn’t going to be the same economy we knew before,” Carlyle’s David Rubenstein says. “Economies evolve.” Whatever it is it will be great Funny because the stock market seems to think otherwise. Oh wait. I forgot. The FederalReserve is printing money to buy stocks. David is taking this call from his dining room in McLean, VA I know because I have been in that room. Humble brag
Source: CNBC - 🏆 12. / 72 Read more »
Wall Street Week Ahead: Investors bet bounce in value stocks will stickAs the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally. I hope all of themlose every penny those greedyfucks did you miss the part where Powell blinked and said he'd bailout Wall st for the next 2 years because the economy is so screwed they can't raise interest rates and they can't earn money the old fashioned way ? if trading fees equal laundering ?
Source: Reuters - 🏆 2. / 97 Read more »
Wall St Week Ahead: Investors bet bounce in value stocks will stickAs the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally. Strange how sentiment can change over night, the fake news induced a brief panic yesterday, and today it's mostly vanished. They'll keep trying to crash the market using every type of hoax imaginable until the election. Strange how sentiment can change over night, the fake news induced a brief panic yesterday, and today it's mostly vanished. They'll keep trying to crash the market using every type of hoax imaginable until the election. $SPY $DIA Well the 1% on the hill are together, the rest of us suffer lives where they take all our money.
Source: Reuters - 🏆 2. / 97 Read more »
Cramer recommends buying these stocks after Thursday's brutal day on Wall Street'In a tough market, you need to circle the wagons around the few good names you feel comfortable buying and then buying more if they go lower,' the 'Mad Money' host said. Cramer all rant but he no stock great picker. ? why still on CNBC!?
Source: CNBC - 🏆 12. / 72 Read more »