Chart of The Day - May 28, 2020

By: Chris Wenner in Charts 05/28/2020

The FANG Index has recovered nearly 100% of the 6-week, 38% loss it suffered earlier this year.  It’s been a huge snapback rally from the March-bottom.  That’s a great thing as many investors lean on the equities in this basket for growth in their portfolios.  As they should.

What’s interesting is that this nearly perfect ‘double-top’ in the FANG Index is also happening during – what looks to be – a major rotation out of tech and into cyclical sectors.  I think profit taking will continue here and be rotated into the far-from-recovered sectors.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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