I wrote about a theme I am seeing play out Tuesday night for Chartadvisor.com. Basically, I have seen a small rotation out of small caps into large caps. If this continues it could signal a subtle shift in investor sentiment towards safety. Following the excerpt below I posted expanded charts of the stocks highlighted in the article.
Small caps have been outperforming their large cap peers throughout the past several months, but over the past couple of weeks there has been a subtle shift back toward large caps. Typically, money rotates from sector to sector based on current investor sentiment. During periods of strong market performance, riskier asset classes such as small caps tend to outperform as investors seek maximum performance. During more volatile periods, investors seek safe places to invest their money such as Treasuries or large cap stocks with strong dividends. We mentioned in a recent article that there might be subtle rotation into large caps as investors seek to protect some of their recent gains.
Wal-Mart Stores, Inc. (NYSE: WMT)
General Electric Company Co. (NYSE: GE)
Goodrich Corporation (NYSE: GR)
Hershey Company (NYSE: HSY)
Good Trading,Joey
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