Software Stocks Have The Answer
Investors,
Software stocks are high beta technology stocks.
Technology stocks are high beta stocks.
So software stocks are really just ultra high beta stocks… meaning that they are a key representation of risk appetite across the market.
When risk appetite is strong, investors want to buy high beta stocks.
When risk appetite is weak, investors want to sell high beta stocks.
In other words, software stocks can tell us how risk appetite is evolving.
Why is that key?
Because risk appetite tends to be strong during bull markets & uptrends, while risk appetite is generally weak during bear markets & downtrends.
Do you see where I’m going here?
If software stocks are outperforming, it’s a confirmation that risk appetite is strong, which is generally emblematic of the market environment and the nature of the trend.
Software stocks are the answer.
And here’s what they’re telling us right now…