News Formal

The big rotation taking place in the stock market explained

  • 📰 CNBC
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 72%

日本 ニュース ニュース

日本 最新ニュース,日本 見出し

The market is rotating. Value is back. Momentum is out. Cyclicals rule. Defensives are so August. No one wants low volatility. What is it we are rotating out of, and what are we rotating into? « The latest from BobPisani:

Much of the reason for the rotation is over optimism on trade talks, the primary driver of the stock market this year.Cyclical stocks are those tied to the economic cycle. When growth is increasing, cyclicals' profits and stock prices tend to rise, and vice versa. Classic cyclical sectors include semiconductors and most technology stocks, transports, REITs, energy, and materials. Some consumer-related sectors like automotive, gaming, and restaurants are also considered cyclical.

Coca-Cola is a classic low-volatility stock; it has a beta of 0.4, meaning that on a day when the S&P 500 might be up 1.0%, it would typically be up 0.4%. selects about 100 S&P 500 stocks with the lowest daily volatility over the past year, without regard to sector. It rebalances quarterly. It's heavily weighted in financials and utilities like Duke Energy, Eversource, and Exelon., is a bit different: it has more stocks , and applies constraints on how large the sectors can get. There is a much lower weighting to both Financials and Utilities, and includes Visa , Coca-Cola and Pepsi .

This "folk mythology" about growth and value is true to an extent, but the ways these are sliced and diced are more subtle and can result in surprises. selects stocks from the S&P 500 Index based on three factors: sales growth, earnings growth to price, and momentum. The largest holdings, not surprisingly, are the FANG names: Microsoft, Amazon, Facebook and Alphabet, but also includes fintech , as well as some consumer names .

 

コメントありがとうございます。コメントは審査後に公開されます。

BobPisani Shill

このニュースをすぐに読めるように要約しました。ニュースに興味がある場合は、ここで全文を読むことができます。 続きを読む:

 /  🏆 12. in JP

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

Rising bond yields support value stocks ahead of central bank meetingsBond yields climbed and stock markets held firm on Wednesday, as hopes of easing...
ソース: Reuters - 🏆 2. / 97 続きを読む »

Everything Jim Cramer said about the stock market on 'Mad Money,' including stock rotation, Chinese consumers and tariff impactsJim Cramer breaks down what sectors investors are placing their money, chats with the CEOs of Dollar Tree, Alteryx and Zoom Video, and tariff impacts on consumers. Ignore anything jim cramer says
ソース: CNBC - 🏆 12. / 72 続きを読む »

A market shift is underway – Cramer and other experts weigh inThe market leaders are now lagging. CNBC's Jim Cramer and two other experts weigh in on the sector rotation. TradingNation So what else is new, doesn't help the working poor either way it goes. The working poor is always left out on everything, you stop at the middle class and the poor is left to defend for there selfs if weren't for the poor working poor there won't be a rich man.😎😎 TradingNation Here we go again...another “expert” marketing strategist with news about the impending recession... doom and gloom, yadda, yadda, yadda...😤
ソース: CNBC - 🏆 12. / 72 続きを読む »