Thanks Again
Institutions can 'react' just as much as individuals, but they need to be more careful on trading due to share volume owned. We think this week's activity is mostly sector-rotation, and thus investors when they reallocate to sectors tend to be less price sensitive (it is a portfolio decision, not a price decision). The AI and momentum trade were crowded, and we are seeing sectors such as transportation hit new highs as money flows change. Generally, sector rotation is easier to take. Investors are still comfortable IN the market, but just in new sectors. Then of course we have the usual corrections that occur and profit-taking, after several years of big gains. So far, things seem 'normal' to us and we would caution against making too many reactionary moves.