Culprtits going from worst to……..?
Culprits going from worst to???
The Culprits——Worst to firsr?——Sector clearly showing relative strength since early May
Checking In On The Worst Stocks
JUNE 20, 2022 BY JC
How’s the Bear Market treating you?
We’re going on over 16 months of this so far, and counting….
Remember, stocks peaked in February of 2021, meaning that was the best things were for stocks during this cycle. And it’s been a slow deterioration ever since.
The first stocks to peak are what we refer to as the “Culprits”. Every bear market has that group that you can point to as the leaders to the downside.
We came into 2022 with a close eye on those Culprits (see here) and we’ve continued to monitor their declines.
If you haven’t been following along, those groups include Chinese Internet, Biotechnology, the IPO stocks, and of course Cathie Wood’s ARKK Funds, who have become the poster child for this latest bubble.
But a funny thing happened 6 weeks ago – they all stopped going down.
And the leader to the upside has been Chinese Internet (yes you read that right, I had to run the numbers multiple times to believe it myself).
Look at these returns relative to the S&P500 over the past month and a half: