Stock Market Internals Earnings Momentum, Small/Mid/Large Caps, Growth/Value/Cyclicals, and Additional Factors
The much-publicized rotation out of Growth and into Value and Cyclical stocks may have ended in Q2. Bond yields retreated and the specter of ruinous inflation receded. Also gaining traction: the notion that outrageous earnings and economic growth numbers we’re currently seeing are not long for this world. From bust-to-boom-to-moderation in record time?
In May, we saw a reversal of April’s reversal—quickly bringing us back to the contemporary trends of Value and Cyclical stocks beating Growth, Equal Weighted beating Cap Weighted, and the Tech Titans failing to keep pace. The Equal Weighted S&P 500 has outperformed the Cap Weighted measure by 15.4% since August 2020.