Technology Sector Dominance in Q2 Data
The recent SEC filing update of quarterly financial statements is now 90% complete. The volume of SEC filings will now start to decrease in coming weeks giving us the chance to take a high-level view of the Q2 data and potential trends.Q2 2020 hedge fund letters, conferences and moreTop-Line WeaknessCorporate growth fell very broadly in the second quarter but not as steeply as we might have expected. Total market average sales growth fell to 5.7% (down from 7% last period and down 15% from the peak in the third quarter of 2018).Average sales growth downtrend continues. The proportion of market...
Age Of Technology Sector Dominance Is Over
The Broad Market Index was down 3.2% last week and only 76% of stocksout-performed the index. From last week’s BLOG, the second surprise in the recent financial statements (now 93% complete for the first quarter of 2020) is the broad improvement in the basic industrial sectorand the further gross margin pressure in the technology sector.Q1 2020 hedge fund letters, conferences and moreMost investors are dramatically underexposed to industrial stocks. Years of underperformance have diminished the share of industrials in the major indexes. Since industrial stocks peaked in 2017, the sector averag...