We’re in the middle of the Great Tech Reset, and many market participants are still asleep at the wheel. To be completely upfront with you, I’m okay with it - and here’s why.
There always has to be someone who thinks differently from you to take the other side of a trade. Without opposing viewpoints, markets don’t function properly.
As I’ve gotten older, I’ve found that spending time and energy trying to convince others of something they don’t want to believe is a losing proposition. Instead, I’ve learned that trading against them is a much more valuable endeavor.
Let’s take a look at how bulls are still running the tape…
It’s a Big World of Tech
I cannot stress enough how bullish tech’s leadership is for the overall stock market. Not only does it account for ~30% of the S&P 500, but we also must recognize when tech tends to outperform, and it’s not in the late-stages of the market cycle.
Tech outperforms when the rally is young and blossoming. We’re just over two months out from a ~20% correction in the market. That was it - “the event” already happened, yet so many still seem to be hung up on it.
We can discuss why that’s exactly the case, but again, my focus is for you to direct your time and energy in the most efficient manner.
Tech is absolutely running the table in the near-term here, and with industrials up double digits year-to-date, and financials outperforming over the last year, it sure doesn’t spell out a financial crisis being around the corner.
Remember, a bull market climbs a wall of worry.
I’ll keep you posted,
-Gianni