Highlights
- Overall, market conditions remain 'good and getting better', but rotation is taking place on several levels.
- On the one hand, we see clear rotation from the top quintile of market cap to the lower 4 quintiles.
- This rotation is in turn being driven by a strong push into Financials (already #1), led by regional banks, and Health Care (now ranked #4), elevated by biotechs.
- As we've said before, there are lots of fundamental challenges for small caps (losing money, financially levered, interest. . .
