U.S. equities are drifting higher again on Wednesday, notching fresh new highs as the “Trumpflation” rally looks all but unstoppable. Yet breadth remains mixed, with pockets of strength in financials and Big Tech stocks, but areas of weakness including energy and utilities.
For the first time in years, it’s a stock picker’s market as cross asset correlations diminish and stocks stop rising and falling in unison — based, as it was, largely on what the Federal Reserve was doing — and instead shifting based on the individual dynamics of each industry and sector group. In the lingo of the trade: We’re seeing a return of investing based on idiosyncratic catalysts instead of “macro” investing.
For those looking for new trading ideas, the latest batch of 13F filings reveals what moves hedge funds are making (with a 45-day delay since the end of the last quarter).