Market Leaders Flash Warning Signs
Market leaders quickly becoming laggards — that's what investors have witnessed lately, provided one looks underneath the surface of the daily market action. Many of the best-performing stocks in the market meaningfully declined last week, 22V Research strategist Jeff Jacobson pointed out in a client note on Monday. It's not just that many of the leaders stopped going up or outperforming, Jacobson said.
- This sudden reversal of fortune among market leaders could be a harbinger of broader market weakness, as it suggests that even the strongest stocks are vulnerable to changing investor sentiment.
- How will investors react when the next wave of earnings releases and catalysts hits, particularly in industries heavily impacted by global events like inflation and trade tensions?