Dave Lutz Jones Trading–Investors have been rotating back into the technology stocks that they favored during Covid-19 lockdowns after inflation fears eased and low bond yields spurred a hunt for better returns. Optimism about the economic recovery, the prospect of more fiscal stimulus and confidence that the Federal Reserve will continue to support credit markets has also boosted sentiment in recent days, WSJ reports.
From Dave Lutz at Jones Trading-That said, EPFR notes Tech fund outflows continuing to accelerate so the pain trade is a Tech Rally
By Lu Wangand Vildana Hajric
-AMC, GameStop lead troubled companies in flooding the market
-Glut of shares provides latest evidence of elevated enthusiasm
If you think a rush by companies to sell their shares is a bad omen for the market, imagine a scenario where most of the sales come from firms that don’t make money.
It’s happening now. Since the end of March, almost 100 unprofitable companies, including GameStop Corp. and AMC Entertainment Holdings Inc., have raised money through secondary offerings, twice as many as coming from profitable firms, according to data compiled by Bloomberg.
Liz Ann Schwab notes pure growth heading for its best month relative to pure value since January 2020
