Goldman Sachs says the reason is that investors have grown less fearful of economic conditions.
The firm recommends a switch to stocks with low valuations and minimal exposure to the U.S.-China tariff battle. A massive move away from the momentum stocks that have dominated much of the last decade has come in part because investors have grown less fearful of an impending downturn, according to Goldman Sachs.
Over the past few weeks, momentum shares, or those showing consistent gains over the past six to 12 months, have. The group has tumbled some 14% since Aug. 27, the worst move since the bull market began in March 2009 among the top 1% of the biggest slides ever, according to Goldman. The drop has come at the same time as government bond yields have moved in the other direction, jumping about a quarter percentage point off, in some cases, historic lows. The momentum move reversed a sharp gain the group had seen in the early part of August.
Really wait and see
Hummm....Well...NOW...I know...
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