Rate Hike Fever: ‘Everybody is Getting Tarred and Feathered’

This is a syndicated repost courtesy of The Daily Reckoning. To view original, click here. Reposted with permission.
Another day, another record close for the Dow.
The stock market continues to hum along as we dig into the final month of a tumultuous year.
But in a dramatic shift, investors are shunning former market leaders in favor of beaten-down bank and industrial stocks. While the Dow Jones Industrial Average added nearly 70 points yesterday, the Nasdaq Composite dropped more than 1.3%.
It’s the biggest market theme since the presidential election: Money continues to pour out of some of the best performing stocks of the past two years and into the forgotten corners of the market.
The divergences are growing as the trading week comes to a close. The Nasdaq has dropped to its lowest close since November 14. Tech stocks have been a huge drag on the Nasdaq and the S&P 500. Meanwhile, the Dow continues to climb. It’s up nearly 5% since the election, compared to a gain of a little more than 1% for the Nasdaq Composite…

This post was published at Examiner by Greg Guenthner ‘ December 2, 2016.

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