Jonathan Kitchen Listen below or on the go on Apple Podcasts and Spotify Money continues to look for other homes away from overcrowded tech. (0:16) Five Below has Wall Street crying 'mea culpa!' (2:49) Small-caps are back - here's where to buy . (5:18) This is an abridged transcript of the podcast.
Our top story so far. Money within equities continues to seek safer shores. Growth is selling off again, with the Nasdaq (COMP.
IND) tumbling -2.5%, the S&P ( SP500 ) down more than +1%, and the Dow ( DJI ), which missed most of the AI excitement, bucking the trend now and topping 41,000 for the first time. Underscoring the rotation trade, BofA’s latest Fund Manager Survey showed that Long Magnificent 7 remained the most crowded trade .
Seventy-one percent of money managers identified the trade as crowded, the biggest crowding survey answer since Long U.S. Tech in October 2020.
The survey also showed that investors are Overweight utilities ( XLU ) for the first time since February 2009, raising allocation to the defensive sector by 20 percentage points month-over-month. That’s the biggest monthly increase on record. Only four S&P sectors are lower, but three of them are megacap homes, with Info Tech taking the brunt of selling.
Chips ( SMH ) are the tumbling, off about 5%. Money is rotating to cyclical and defensive sectors. Energy ( XLE ) is the top-performing sector, followed by Real Estate ( XLRE ) and Consumer Staples ( XLP ).
Unlike the past few sessions, small-caps are get.
