But we’re not.
Crude is off almost 5%. European stocks are off by 1%+. Gold and bonds are higher, yet the NASDAQ is up.
Tech stocks are being accumulated. Stocks like GRPN, YELP, YHOO and even ETSY are higher. While commodity related names get poleaxed into oblivion, WDAY, PANW, QUNR and DATA are up.
Inside Exodus, my bubble basket is higher by 0.5%, while the commodity basket is off by 2.7%.
Thanks to AMAT, semis are up too.
In my opinion, this is indicative of institutional accumulation in undervalued, or beaten down, tech names, whose growth prospects are now attractive relative to their valuations. The rallies are too broad based for it to be a coincidence.
As an investor, you’re running out of spots to place your money. If you’re not interested in gold or bonds, what can you buy? Do you want to chase CLX and MO after the runs they’ve been on? They’re not cheap. You’re not buying commodities. The cycle is over.
The only place that makes sense, if you’re a bull, is tech. For the most part, balance sheets are clean. They’re making a lot of money and valuations have shrunk.
Whether or not this thesis ends up being correct remains to be seen. As of right now, looking at the screen in front of me, this is the bet that is being placed by money managers.If you enjoy the content at iBankCoin, please follow us on Twitter