In the last 30 days, the tech-laden Nasdaq composite index is down 7%. By comparison, the Dow Jones Industrial Index, which is home to more of those traditional old-economy companies, has only lost a modest 3.5%.
Amongst those Dow Jones benchmark shares that have made headway in an otherwise down market include banks, restaurants, integrated oil, and pharmaceuticals. We won’t get more old economy than those.
That has prompted some to ask if a rotation from expensive tech shares into less exciting old economy stocks is taking place?
That is quite possible given that the narrative about interest rates has gone from one that has been fiercely accommodative to one that is more vigilant about inflationary pressures. It is looking increasingly likely that all the assertions about inflation being transitory is now about inflationary pressures being more persistent…
… At the conclusion of the recent two-day policy meeting, the Federal Reserve’s...