You can always tell when there's a wave of money coming into the market: it takes up everything. You can scramble to look for a story on Boeing (BA) or United Technologies (UTX). Good luck, there's nothing. You might wonder whether McDonald's (MCD), again, is going up on turnaround talk -- those February sales better be good after this run. You can scan for stories about Disney (DIS). Don't bother there is nothing there. Home Depot (HD) goes up two more bucks after a good previous week.
This is all about a re-allocation into major capitalization stocks and out of interest rate-sensitive -- check the breakdown in all the utilities. Some big funds must want exposure to the giants in this market and less exposure to bonds and their brethren in the market.
It is a remarkable move and I think it is emblematic of a moment where people think the economy's better and you have to shift to stay in this performance game.
I write about this phenomenon in Get Rich Carefully, saying this is what happens when the consensus builds that things are better. Usually it implies rates are going up and these stocks do fine in the first couple of rate hikes. The market is, correctly, anticipating higher rates. The wave coincides with the employment report this weekend. But it may just be lots of pent-up money coming back to the market as it should given the horrendous returns that bonds offer.
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