We are seeing continued rotation that is likely to continue. As you know, I believe that most of the folks that have been bullish are in the sectors that were benefitting from the “stay-at-home” environment. The problem is those areas have begun to underperform the “economic reopening” beneficiaries like the Banks and Industrials and everyone is being forced to rotate at the same time. How do we know this? We know because as the market has corrected throughout the day in the mega-cap work-from-home stocks, the KBW Bank Stock Index (BKX) has rallied further despite the weakness in the S&P 500 (SPX) Index (Figure 1).
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