Venture: Portfolio Update
Issue 95;
Market risk has picked up. Since the last market high in October, energy and healthcare have proved to be the most resilient sectors, with defensive sectors lagging behind. Yet over the past fortnight, there has been a notable selloff in the tech sector. The VIX is back above its 200-day moving average.
The VIX
These things happen on a regular basis, but as our GTI work has shown, there is potential for a major market rotation. Given the extent of the concentration in market leadership, the potential for the strongest stocks to give back ground is unusually high. The lagging sectors, such as energy and healthcare, have stepped in.
Deviation for the “Average” Stock Versus Market
As you can see, the average stock was extremely oversold just a fortnight ago. In the latest monthly review for ByteTree Venture, we cut the weakest links and update clients on recent corporate developments.
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