Brian Earl Spilner said:
I have no strong opinion one way or the other, but what exactly is that distinction in your mind?
Folks taking profits on the megacaps, and buying into smaller companies, how is that different?
I don't think anyone thinks all of that capital is going into smallcaps, but some of it maybe.
Hard to know honestly. But your thesis would have to be that institutional buyers are leaving the MAG 7 and going to the weakest companies from the last two years.
In 2000, when smart money left big tech, everything fell. In 2021, when smart money left big tech, everything fell.
Last time inflation was high and coming down (same timeframe in 2007), when smart money left blue chips, it left everything.
Like I said, it's hard to buy into something that has no history of happening, at least in the last 25 years. If money is truly rotating, then you should see a huge drop in Mag 7 and IWM blast back to 2021 levels.. within a couple weeks. I don't buy that people are leaving the companies that are apparently going to carry us into this AI fueled future.. for companies that are losing money, simply because inflation was down a fraction of a hair month over month and the FED might drop 25 basis points. That kind of rotation would be saying that big tech and blue chips are done and the rest of the stock market that has lost money hand over fist is going to carry us forward. How in the world does that make sense?
Either they all fall, or Mag 7 continues to outperform.
"H-A: In return for the flattery, can you reduce the size of your signature? It's the only part of your posts that don't add value. In its' place, just put "I'm an investing savant, and make no apologies for it", as oldarmy1 would do."
- I Bleed Maroon (distracted easily by signatures)