Goldman Sachs’ stock has fallen into a bear market this week, while at the same time the S&P 500 has hit a record high.
It’s unusual to see this kind of divergence: the overall index makes new highs, but bank stocks slide into a downturn. Financials are often treated as a leading indicator of the economy, yet the index is propped up by just a handful of high-weight stocks. Strength here, weakness there—capital isn’t uniformly bullish.
Is this divergence due to sector rotation, or is the market holding something in reserve? Don’t rush to pick a side. Let other people’s analysis belong to them—your position size is your own.
It’s unusual to see this kind of divergence: the overall index makes new highs, but bank stocks slide into a downturn. Financials are often treated as a leading indicator of the economy, yet the index is propped up by just a handful of high-weight stocks. Strength here, weakness there—capital isn’t uniformly bullish.
Is this divergence due to sector rotation, or is the market holding something in reserve? Don’t rush to pick a side. Let other people’s analysis belong to them—your position size is your own.
