Home » General World News » ‘A big head fake’: Several investors are calling bluff on a major stock-market rotation that could be warning of doom

‘A big head fake’: Several investors are calling bluff on a major stock-market rotation that could be warning of doom





Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 25, 2017. REUTERS/Brendan McDermid

  • Defensive sectors of the stock market have recently outperformed cyclical growth sectors.
  • It’s a trend Morgan Stanley’s equity strategists have warned about for months. On Monday, they said the aggressive rotation into defensive sectors had finally arrived, bearing big risks for broader stock market.
  • Strategists at BlackRock and elsewhere have offered different analyses of this rotation.

Investors are a lot more defensive of late.

Since mid-June, so-called defensive sectors that are preferred when investors sense a meltdown is approaching have outperformed cyclicals, which tend to be supported by a booming economy.

It’s a rotation that Morgan Stanley’s equity strategists read more >>>

Source:: BusinessInsider.Com

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