/biz/ - Business & Finance

>>18980178
The beginning of macroeconomic cycles tend to favor small cap growth, which can be cycled out of later in the cycle. Pic related. VUG, which became heavily tech weighted toward the end of the cycle, started to overtake VB around 2018. Of course, QQQ matched up until mid 2011, and then began outperforming. It might be worth considering, given where top heavy tech-driven indices are right now. They pose a greater risk of dragging the market and tech-weighted indices down once people move out of the safe heavens that they believe tech to be and begin cycling into other sectors that were depressed, but have since begun to rebound and offer higher potential returns.

>>18980315
Which is what began to unravel back in late February and March, after which credit restrictions have begun increasing.

>>18980440
There are a lot of economic reasons for a down turn, but it entirely depends on how market psychology plays out. There are going to be a lot of negative economic headlines coming, but perhaps some positive ones too regarding CV, at least. That said, fear over losing capital in choppy markets could cause depressed market sentiment to trigger a downturn, which has historical precedent. Yes, long term inflation might be a problem and TINA is worth considering in such situations, but in the very near short term, investors could seek safety over risk. Greed and fear are fickle and oscillation between the two is easy, depending on what outside context the markets are given.