See? ALL the money.
Now on the one hand this is rather unusual. You would expect a shift from growth to value, tech to defense, that sort of thing - happens every now and then just to keep your average maven happy. Well. not happy. They don’t like being happy. Gives them a little adrenaline, enough self-belief to wave the walking stick at those pesky kids for the next 10 year period in which investing in the future is a better idea than siphoning cash out of the past.
But that there isn’t growth to value. That there is an extreme form of a cunning Big Money trick that is not usually so transparent.
Last year, when retail was busy hogging crypto, Big Money was quietly buying up Exxon Mobil and WTI futures, not noisily enough for many people to notice, and all the while appearing on CNBC saying, wow, this growth rocketship huh, it’s got a way to go yet. Big Money was distributing tech and buying energy. It was doing so for two reasons. One, energy was so beat-up it couldn’t even crawl back from school. And two, Russia actually told everyone they were going to invade Ukraine and so that meant likely sanctions and that would obviously mean higher oil and gas prices. So that made the plan all the better. Well done Big Money. This kind of thing is why, in fact, they are Big Money.
If you’re Big Money and you look at that chart above - what do you suppose your Dick Dastardly moneymaking plan might be? To hog more oil wells? To buy up more intermediate distillate distribution businesses? Nope. Let Joe P. Retail, who is now an energy-sector ninja, (that’s his new FinTwit handle anyway) buy that stuff. He can buy your energy stuff that you are quietly distributing in the market.
Here’s what happened last week.