Cubic Analytics

Cubic Analytics

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Cubic Analytics
Cubic Analytics
Worry About What?

Worry About What?

Caleb Franzen's avatar
Caleb Franzen
Jul 23, 2023
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Cubic Analytics
Cubic Analytics
Worry About What?
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Investors,

Bears would like you to believe that technology stocks have been pushing the market higher, without participation from other sectors. They’ve been beating this drum all year, specifically focusing on mega-cap tech in particular. Unfortunately for them, this hasn’t been the case at all over the past month, even while the Nasdaq-100 has gained +3.7% since the 6/21/23 close.

In fact, technology is ranked #7 in terms of best 1-month returns:

Even communication services, predominantly Google & Netflix, is ranked dead last!

What’s performing the best? Economically sensitive sectors of the market.

Are investors worried about bank failures? It doesn’t seem so. Are they worried about a commercial real estate collapse? It doesn’t seem so. Are they worried about collapsing crude oil prices as a result of a recession? It doesn’t seem so. Are they worried about industrial activity and the demand for metals? It doesn’t seem so. Are they worried about the U.S. consumer? It doesn’t seem so. Are they worried about manufacturing activity & fixed investment? It doesn’t seem so.

Perhaps these investors are completely wrong. Perhaps the pundits on television are.

All I know is that the former group is actually allocating capital based on their beliefs, rather than just talking about what their beliefs are. Therefore, I’ll listen to the former.

As I facetiously said in yesterday’s newsletter, I suggest you panic.

In the remainder of this report, exclusive for premium members, I’ll be sharing:

  • S&P 500 internals & under-the-hood metrics

  • NYSE FANG+ Index analysis

  • Earnings week preview

  • Altcoin trades & risk management

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