The Great Unwind: Mega-Caps to Main Street
Learnings and conclusions from this week’s charts:
1. The S&P500 $S&P 500(.SPX)$ equal vs cap weight ratio is at an inflection point.
2. Investor cash allocations are at cycle lows.
3. (equity allocations are at cycle highs)
4. Global vs US equities are also at an inflection point.
5. Despite some overheating in EM equities, there’s room to run.
Overall, while last week saw some particularly turbulent price action within tech (especially software slumping as a result of AI disruption/threats), we’ve seen further progress on bullish rotation and bull market broadening.
And in case I didn’t make myself clear, Rotation is the big theme right now…
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