The Returned-And-Forth Exchange Between Financial Institution And Tech Stocks

“Financial and tech stocks – the two largest segments of the market – have been moving in opposition to one another lately to an unusual degree.
And, for a time early this year, the sector correlation briefly turned negative – meaning tech and financials were on opposite ends of a virtual seesaw.
The S&P 500 tech sector, accounting for 23 percent of the index, is up 19 percent year to date and 5 percent in July alone.
The dominant tech stocks such as the FANG foursome are, in a way, a leveraged play on disinflation, because not only can they grow fast organically but their businesses themselves – digital networks – are drivers of consumer deflation.
“Of course, this call for outperformance by tech and financials comes in the context of a fairly neutral market outlook by Kostin.

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