All four major market indexes closed this Hump Day in the green, with varying degrees of success: while the Dow barely crossed the finish line in the positive, dancing around break-even for the the final hour, +0.03%, the small-cap Russell 2000 gained 1.97% on the day. In between, the S&P 500 posted +0.19% at the close and the Nasdaq was +0.59%. Are we back to higher-risk growth investing?
It’s too soon to tell. In fact, this week has been a bit of a mishmash, especially considering the past six weeks or so, which were pretty easy to derive patterns from: selling out of growth (FAANG and other tech) and into cyclicals like staples and finance was the method at first, then reversing course. After this, investors would spend the first half a week on a strict low-valuation diet, only to feast a bit going into the end of the week. Through the first three days of this week, it’s hard to say what rules apply.
