over the trailing 12 months — since 2009. In fact it was one of the worst two-week stretches for those stocks since 1980, with returns in the first percentile for that period.It's been brutal for investors who made big bets that those recent winners would keep climbing"Perceived improvement in US-China trade negotiations and better-than-feared economic data helped ease investor concern about an impending recession, lifting bond yields and sparking the market rotation," he wrote.
The rise in bond yields caused investors to dump the defensive stocks, which pay high dividends. The stocks had become expensive and those dividend payments didn't look so attractive as bond yields increased. Meanwhile the more optimistic view of economic growth that Snider mentions set off big rallies in shares of companies that are more closely tied to the economic cycle, like energy, banks, and small caps.Delwiche said that if the shift into neglected stocks lasts a bit longer, it could be a very good thing, leading to broader market leadership that helps the decade-old bull market keep running., he said.
Are we surprised? This is the danger of assuming the rest are bigger fools.
S&P 500 over 3000! Yea!
Good thing I invested in Yahoo Answers
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