Disclaimer: This chart shows how Non-Nasdaq100 Companies have fared vs Nasdaq100 Companies. I personally interpret this as the "SmallCap vs MegaCap Index".
The recent days have been incredible. We're witnessing the probably strongest rotation from MegaCaps to SmallCaps the market has ever seen.🙌
As some of you might now from my previous ideas - we've been in a bear market for a year, starting on February 11 2021:
That bear market seems to be at an end now while the bear market for MegaCaps is just getting started 🐻.
Trial number 3 seems to be successful - other's have miserably failed, like this one in August:
While MegaCaps have tanked, normal stocks have rallied 🚀:
Disclaimer: The chart you can see above is the Nasdaq Composite Index (IXIQ) cleaned of Nasdaq100 companies (to the best of my knowledge).
It's definitely a good time to be out of ETF's and be in individual stocks that have reasonable valuations as compared to most US MegaCaps. As always, let me know your thoughts. 🤯