Market Review and Trends
Smart Thought Of The Week: Rotation
By The Smart Investor  •  October 5, 2021
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...
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.
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