![]() ![]() Many strategists think the declines are healthy, and that share prices of many tech companies shot up too much, too fast.Ĭontinued selling may hinge on what we hear from central bankers in the coming days. But the Nasdaq has almost wiped out all of its 2021 gains, and is now down more than 2% this year. And the Dow Jones rose almost 1% on Monday. See here: The KBW Bank Index, which tracks top US lenders, is up 23% this year. ![]() “ value sector has at least the possibility to play catch up.” “If you believe in this whole reopening and estimates of GDP growth … that means growth is less scarce,” he told me. Jeroen Blokland, a portfolio manager at Robeco, thinks that as estimates for economic growth continue to improve, so-called “value” stocks in sectors like banking - which benefit from a healthy economy - may begin to get a second look. That could make assets like US Treasuries start to appear more enticing - triggering outflows from the tech names that have been so popular over the past 11 months. They’ve helped keep yields on government bonds extremely low, boosting interest in riskier investments like stocks that offer better returns.īut now, bond yields are rising on inflation concerns. Rock-bottom rates have been a boon for fast-growing tech companies. That could put pressure on central banks like the Federal Reserve to hike interest rates sooner than expected. Breaking it down: Investors have become increasingly worried that the reopening of many big economies later this year will lead to a spike in prices as people rush out to restaurants and book vacations. ![]()
0 Comments
Leave a Reply. |