The Mischler Capital Markets’ June end-of-month equities market commentary pointed to the nearly historic negative correlation between major market stock indices, as mid-cap stocks and utilities caught up to the upward moves in big cap techs. In that spirit, readers of the Mischler End-of-Month Equity Markets comment were challenged to say “dispersion” five times fast.
Those who mastered this tongue-twister earned a lollipop for their efforts, and those within the tech sector who were in 10b5-1 mode, you get a pat on the back (before you have to budget for taxes on gains).
The MFG note from last month also suggested the first half of July would enjoy noticeable gains in stocks, and then would likely be followed by downward pressure on tech sector prices, and expected investors would redeploy to the mid-cap arena. This is precisely what happened, albeit the first trading day of August put a damper on that re-deployment scheme, as the mid-cap index IWM forfeited half of the 10% gains achieved by the last day of July.
The July 2024 end-of-month commentary, intended for Fortune CEOs, CFOs, and IR executives includes observations about the the following:
- A Tale of Two Markets for Stocks?
- CEO & CFO Outlooks During Earning Calls: Cautious
- IPOs, Spin-Offs and M&A
- What Else Are CEOs, CFOs, and IR executives thinking about (aside from Geopolitics)?
- Market Benchmark and Sentiment Data
*Note: In our end-of-June comment, we observed that the second half of July would prove challenging for stocks; notably tech stocks that have enjoyed material gains during Q2. We should note that while the last day of July comported with that view, yet given we published this update within the past one hour, we inserted the updated market metrics: the gains in $SPX and $IWM (along with other major market indices) from the last day of July were completely erased and the broadening into mid-cap value indices suffered a material set back.
That said, the equities markets have proven erratic for many months, and we don’t anticipate this to change.
The 5-minute read is available via this link
