Forbidden February for investors was emphasized a Bad reading about consumer confidenceand Soft Consumer Consumer Consumer Reportand sale at many moments that have defined a market action this year.
“Fear here among many investors now [has] Become that the economy can slow down faster than the Fed is willing to respond, which is a difficult situation, “Steve Sosnick, the main strategist in interactive brokers, said Yahoo Finance Interview on Friday.
For the month, technologically heavy Nasdaq composite (^Ixix) fell about 4% while S&P 500 (^GSPC) and the Dow Jones industrial average (^Dji) were lower by 1.4%.
Near: February 28 at 5:15 pm
^Ixix ^Dji ^GSPC
Sosnick noted that in recent days, the DOW was the best relative performer among the main indexes of US shares, given the lower weight according to technological and momentum names playing a larger role in his peers S&P 500 and Nasdaq.
Consequently, defensive games such as consumer staples (XLP) Have a more prominent influence on DOW from S&P 500.
“This is an environment or for illumination [on stocks]Collect a little money, which, given that Gotovina still pays you 4%, is not a terrible place for, “Sosnick said.” But if you want to stay invested, you may want to move a little more towards low beta sections and high dividends, as they are currently a little more isolated than the market risk mentality. “
Low beta supplies tend to trade with less volatility than average market supplies, whether less or less when the market is moving one way or another.
Whether this market is shaken by fears due to economic growth – or just see rotation while investors are moving away from the recent winners – a discussion that looks to define the last month of the first quarter.
“Faster is in the midst of another intimidation of growth, in our opinion,” wrote Ed Yardeni and Eric Wallerstein of Yardeni Research in a recent note. “The latest series of economic indicators was weak. Current growth is reminiscent of scared last summer.”
This sale was reported that the S&P 500 had fallen only less than 10% of the top to the spending before the index recovered to achieve new top -notch heights by November.
Neil Dutta, Economics Head of Renaissance Macro, Warned in a recent note to clients that the economy seems to be softened, with the decision of the federal reserves to increase the footsteps in the amount of “passive pesting of monetary policy [that] is a dominant risk and has important consequences for investors in the financial market. “
