Rotation From Growth to ValueI've published this chart a few times, but the pivot from Growth to Value is accelerating at an astonishing rate. August 3rd is the date where this rotation really began. You can see big tech mega-caps start to stall at that point and we've seen several pullbacks in growth names since that time.
It was a correction that needed to happen. Once the rotation is done, there's a good chance the whole market can move back to an uptrend.
IUSG
Buffet indicator- The world of growth stocksYes, the stock market is overheated judging by all valuation metrics.
For those of us who don't want to jump the gun and want to stay in the trend until it is broken, sector ETFs offer better return than major indexes such as S&P 500 and NASDAQ, but are not as volatile as individual stocks.
According to Goldman Sach, IT and consumer discretionary have risk adjusted return (Sharpe ratio) of 0.9.
Stay safe out there.