Can the Market Rally Without AI Leading the Way? | Cabot Street Check

Okay.

So we will talk more about volatility, especially in, like, chip names, small caps.

Tech has sort of been leading the way down.

Um, but for the time being, we are not seeing that money leave the market.

We are seeing that money flow into previously undervalued segments.

Healthcare's up 5.4% in the last week.

Consumer staples up 3.9. Real estate up 2.8. Materials up 2.6. Energy up 2%.

Financials 1.9. Consumer discretionary, 1.5%.

Um, in the aggregate, the Wilshire 5000, which measures the market cap of every stock, every US-listed stock, it's down 1.4% from its all-time highs.

So what we're n- seeing right now is not money flooding out of stocks and rushing out of stocks.

We're seeing money come out of some of the overpriced, highly valued tech names, and then rotate into undervalued areas of the market.

Um, you know, treasuries caught a bid when tech really sold off earlier this week, so there is a little bit of positioning that is coming out of equities and going into bonds.

Um, when Treasury yields came down, gold obviously rose, uh, as well.

So there's, there's a more defensive posture, but nobody is panicking.

Um, and I think that's, like, the right framework that most investors should be looking at towards the end of this year, is smart money is not leaving the market in droves.

They're just looking to reposition their portfolios.

Value outperformed S&P over the last year, outperformed the equal weight.

Um, small caps are, they're under their 200-day line-

Right

...

but they are trading at a discount.

So don't look at this a- as a red flag.

Look at it as a good time to rebalance.

All right.

You almost hit the post.

Okay.

So we will talk more about volatility, especially in, like, chip names, small caps.

Tech has sort of been leading the way down.

Um, but for the time being, we are not seeing that money leave the market.

We are seeing that money flow into previously undervalued segments.

Healthcare's up 5.4% in the last week.

Consumer staples up 3.9. Real estate up 2.8. Materials up 2.6. Energy up 2%.

Financials 1.9. Consumer discretionary, 1.5%.

Um, in the aggregate, the Wilshire 5000, which measures the market cap of every stock, every US-listed stock, it's down 1.4% from its all-time highs.

So what we're n- seeing right now is not money flooding out of stocks and rushing out of stocks.

We're seeing money come out of some of the overpriced, highly valued tech names, and then rotate into undervalued areas of the market.

Um, you know, treasuries caught a bid when tech really sold off earlier this week, so there is a little bit of positioning that is coming out of equities and going into bonds.

Um, when Treasury yields came down, gold obviously rose, uh, as well.

So there's, there's a more defensive posture, but nobody is panicking.

Um, and I think that's, like, the right framework that most investors should be looking at towards the end of this year, is smart money is not leaving the market in droves.

They're just looking to reposition their portfolios.

Value outperformed S&P over the last year, outperformed the equal weight.

Um, small caps are, they're under their 200-day line-

Right

...

but they are trading at a discount.

So don't look at this a- as a red flag.

Look at it as a good time to rebalance.

All right.

You almost hit the post.