Taps Coogan – November 17th, 2022

Enjoy The Sounding Line? Click here to subscribe for free.

The following chart, from Crescat Capital’s Otavio Costa shows the relative performance of Goldman Sachs’ mega-cap index versus the S&P 500 equal weighted index.

.

The punchline is that the mega-cap tech stocks, the darlings of the last decade’s bull market, have broken down below their outperformance trend.

Every cycle has its leaders and they are rarely the same from cycle to cycle. Given how different the financial and economic landscape is today compared to just a couple years ago, this new cycle is unlikely to change that pattern.

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.