From technology to traditional sectors, from assets with greater risk to others considered safer, in recent years investors have repeatedly carried out capital rotations that, despite not being balanced, have allowed an upward movement in the North American indices, limiting the feeling of over valuation present in the market, which does not prevent, however, at the fundamental level, the valuation ratios are very stretched, whatever the metric used, especially at this stage when the profits and revenues of companies fell sharply, but without that reflected in the same proportion in the value of securities on the stock exchange.
In the last few weeks this movement of capital fluctuation has been evident, with episodes of Nasdaq correction while the industrialist Dow Jones and the S&P500 achieve better performances, but the divergence between the new economy and the businesses of more traditional sectors is clearly visible in the annual figures, with the technological index registering a comfortable gain of more than 10% in 2020 and setting new historical highs, while the S&P500 has only now approached the opening values of the year and still 4% of unknown territory.
This scenario is expected to continue to be dominant in the coming months and will be a reflection of what companies are reporting in the earnings season, namely that the great technologies and their products in high demand in quarantine times, are for now those that present a rosier future.
