- 25 апреля 2018, 16:41
- ZeroHedge. Alternative view on facts
The last week has seen the market try and fail three times to 'rotate' to another market-leader as momentum-chasers desperatly cling to the old adage, if it's going up, buy it. But one by one, chipmakers, big techs stocks, and now falling by the way side...
Ominously, as Bloomberg reports, each time the market has run out of 'leaders' for greater fools to chase, a recession has quickly followed...
“Leadership changes are afoot below the surface and portfolios need to adjust,” Mike Wilson, an equity strategist at Morgan Stanley, wrote in a research note. “The bigger challenge is trying to decide what to own as leadership is changing.”
For now, it appears investors are losing faith in the 'follow-the-leader' strategy, as the iShares Edge MSCI USA Momentum Factor ETF lost almost $500 million last week, the biggest withdrawal since the fund was started in 2013.
And rather than bounce back from this contrarian outflow, momentum has continued to get massacred this week...