1: Energy stocks relative performance hasn’t been this weak since the Great Depression
Could the energy sector’s recent outperformance be just the start of a reversal out of tech and into lower-duration (higher cash generating) sectors?
The second chart below shows the YTD performance of S&P 500 sectors, with energy leading the pack at 18.4% and everything else in negative territory.
2: Nasdaq constituents haven’t been doing this poorly since 2008 and 2000
Over 1600 Nasdaq stocks are down over 50%!
3: The tech bear market is also a duration bear market
US stock duration - aka sensitivity to interest rates - is highest since the tech bubble, hence why Nasdaq constituents are getting decimated as yields rise.