(Bloomberg) — Retail traders sold the ETF dip, hedge funds bailed at the fastest rate in five months, and institutions cut allocations to lows unseen since the financial crisis. Then the tech megacaps staged an $870 billion comeback.
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It’s something few investors saw coming, after a hawkish Federal Reserve sparked a violent new-year rotation out of growth companies like software and into cheap, economically sensitive shares.
Yet as Google’s parent Alphabet Inc. joins Microsoft Corp. and Apple Inc. in reporting robust results, both day traders and Wall Street pros risk getting blindsided by the rebound in the famous tech cohort known as Faang.
“Growth and tech have seen a major reversal off the lows,” said Chris Harvey, head of equity strategy at Wells Fargo Securities. “The quick turnaround is likely causing pain not only for investors that have shunned…
