Friends
In recent weeks, we have seen a bit of a shift from growth to value, a rotation if you will, in the stock market, and today was the most pronounced example of that rotation. While the Dow showed modest gains, we saw quite a bit of selling in the growth/tech heavy Nasdaq. Again, for some weeks now we have seen a rise in the shares of the financials, industrials and energy. In the meantime the darlings of the previous 12 months are showing some wear and tear, namely big tech and mega growth names.
As for today, by the close the Dow Jones Industrial Average was up 27 points to finish the day at 31,521. The S&P 500 was down 30 points to close at 3,876. The aforementioned Nasdaq Composite Index was down 341 points to close at 13,533. Gold was up $30 to trade at $1,807 per ounce, while oil was up $2.45 to trade at $61.69 per barrel WTI.
It will be interesting to see if the rotation from growth to value continues in the coming weeks and days. Growth has worked for so long, and investors have fallen so in love with the big growth names, that it might be difficult to teach an old dog new tricks. This could be an interesting week. Stay tuned.
