One observation I forgot during last night’s muse is the relative strength showing up in three names (FD: I am invested in all three) that I consider to be ‘the old guard’. These are immutable legends; immortal entities revered and feared as much as the ancient gods once were. Goldman Sachs, Walmart, and AT&T. I have been noticing their divergent strength during our current sell-off:
My initial interpretation is that the risk cycle has either been reset or is in the process of being reset, with investors rotating back to quality after abandoning their high-risk saas, cryptocurrency, and pot speculations.
A reset of the risk cycle is a positive sign for the health of the stock market, if that is in fact what this small observation is alluding to.
As always, tbd.If you enjoy the content at iBankCoin, please follow us on Twitter