The Move Into Beta

The only thing that is more amazing than the persistence of this move is the persistence of the rotation into high beta stocks. This comment might fly over the head of many as it took me many years of trading before I noticed how money rotates from sector to sector. I don't think I have ever seen such a persistent rotation into high beta stocks without a break.

1 comment:

PJ said...

Yes, this is what has been killing me. I have maintained core shorts in the most insolvent companies. This degree of rise in the S&P wasn't unexpected to me and wouldn't have bothered me, but the rotation into crap like Citigroup is hitting my portfolio hard. My longs didn't begin to make up for the damage.