We just saw a $50 Billion Tech IPO successfully issued into public markets.
Remember those?
But before we get into growth stocks, let's just put the overall market into perspective.
It was nice to get away from the screens for a few days, while we were out at Future Proof in California. But not much has changed now that I'm back home.
Here's a shot of us during my panel discussion at the Conference:
The most important groups of stocks are stuck below overhead supply.
That's not usually a characteristic of strong uptrends where investors are consistently rewarded for owning stocks. That was the first half of this year.
Today, it's almost the exact opposite.
In this type of environment, investors are rewarded for selling volatility and collecting income. Investors also tend to be rewarded for avoiding these types of sectors and looking for opportunities elsewhere, in less correlated areas.
Here are 4 of the most important groups of stocks all stuck below their prior cycle's peaks:
To add to that sentiment shift, here is the our internal sentiment composite which includes data from Individual Investors, Advisories, Active Investment Managers, Volatility and the Options Market.
As you can see last year saw some of the most pessimistic levels in history, giving us one of the greatest buying opportunities we've ever seen.
The Nasdaq100 is already down 4.5% this month. Technology as a sector is down almost 6.5% for August.
But corrections are a choice, not a requirement.
As an investor, you make the choice and decide which assets you want to own and which you do not.
Remember, "Passive Investing" is a lie. There's no such thing. All investors are active. The difference is whether you choose your portfolio holdings, or you let some random index providers make those decisions for you.
But we're all active investors, whether we like it or not. Don't forget that.
So even thought the indexes are messy this quarter, take a look at Energy hitting new 6-month highs this week: