Thursday May 7 2020
I read an article years back that everybody owns Apple no matter what fund or ETF you are in.
Fund managers are judged on performance. That means they all chase whatever is going up, and they want the name of that stock on the quarter end holdings
as proof they are ' in the hunt.'
As Apple and the FANG stocks have been great performers, as this market ages, more and more crowd into the same stocks.
An alert reader asks about the billions the FED is pouring in by buying T Bonds
Good point, what then happens? Just guessing, you are a fund manager, the FED offers to buy your T Bond, you sell, what to do with the cash? Well that cash did not go to Joe Sixpack trying to keep his curbside delivery hamburger stand open. To show you are a top performner you channel the T Bond cash into one of the FANG stocks. This explains why the NASD has outperformed the S & P and DJIA.
Technology ETF
PMO is looking toppy but the trend is still up. all hail High TecH!
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