“The big talking point in US equities circles of the past week has been the extreme mega-cap outperformance over small-cap”, he says, noting that Nomura’s US equities “size” factor market-neutral strategy has suffered the biggest four-day rout in the past 10 years.
...
The explanation is simple. “Investors are in the liquidity and ‘safety’ of the mega-caps right now, on top of the obvious cyclicality and balance sheet dynamics of US small-cap equities as their negative feature, with those companies being the most negatively exposed to the downside of the coronavirus recession from a cash flow- / access to funding- perspective”
-- Nomura’s McElligott
I made a chart showing historical levels of Growth/value ratio.
Higher the ratio, bigger the tech bubble
...
The explanation is simple. “Investors are in the liquidity and ‘safety’ of the mega-caps right now, on top of the obvious cyclicality and balance sheet dynamics of US small-cap equities as their negative feature, with those companies being the most negatively exposed to the downside of the coronavirus recession from a cash flow- / access to funding- perspective”
-- Nomura’s McElligott
I made a chart showing historical levels of Growth/value ratio.
Higher the ratio, bigger the tech bubble
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make sure to check out heisenburgs repor's web. inspired me about charting this.
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