Black Holes in Stock Market (Patreon)
Content
The stock market has been on a recovery since October 2022, but the rally has been led by a small group of large-cap stocks.
This is unusual, as typically a bull market is characterized by broad-based participation from all sectors of the market.
One possible explanation for the narrow rally is that fund managers were underweight these large-cap stocks at the end of 2022.
As a result, they have been buying these stocks back in 2023, which has helped to drive the market higher.
As I say - during these times money chases Growth and companies that generate cashflow. They are few and far between these days.
Thanks Sanjay for sharing....