What can it all mean when mega-cap stocks and US Treasuries start behaving as if they were penny stocks?
Tavis McCourt, Institutional Equity Strategist at Raymond James, has an idea about that. “We would argue it shows a complete lack of conviction by investors in certain business models/earnings power, and the state of the economy overall,” McCourt wrote.
McCourt is talking of the spell of extreme volatility the markets are currently going through, noting that investors can’t make up their minds whether we will see a multi-year economic recovery or whether we will soon enter a “Fed induced” recession.
Investor psychology is changing on a weekly – or even daily – basis. As such holding on to your investment convictions has never been harder – or more painful. That said, McCourt adds that sticking to your guns is essential in “driving outperformance.”
Against this…
