Roaring Reopening Trade Threatened With Boom Nearing Peak
- Time to shift to quality in ‘unusually fast cycle’: Sheets
- Goldman expects U.S. economic growth to peak this quarter
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In a stimulus-crazed economy, everything goes faster. The recovery came quicker than forecast, the rally in reopening stocks was dizzying, and now the comedown may be upon markets sooner than anyone thought, too.
Stocks that soared are starting to give the gains back in fits and starts. The small cap Russell 2000 Index -- at one point up 135% from the pandemic bottom -- is underperforming the Nasdaq 100 by roughly 4 percentage points this month, after largely dominating since the vaccine breakthroughs in November. Cyclical sectors such as financials and energy have trailed as technology powered ahead in the past month.