Here is an interesting chart from Luke Kawa. It shows the monthly returns of a basket of Goldman Sachs retail preferred stocks. It’s down 12% this month through yesterday, making it the worst month since April 2022.
Note that bad and good months tend to cluster as momentum dominates. There were an amazing few months right after the height of the Iran War and with the release of Cloud Mythos, but the profit taking has hit the memory banks and the war continues.
The retail sector had an amazing ability to buy the dip but this week we got a lower CPI report and the momentum was quickly extinguished. Also today there was a brief attempt to bounce off the lows but it did not last.
Among the names in the basket are Crowdstrike, AMD, and Micron.
