Market Overview

Credit Suisse Says The August Equity Rout Is No Surprise, Saw Bearish Sentiment Build Rapidly W/ Institutions & Traders Since July

Related SPY
Q&A With Hedge Fund Industry Expert Don Steinbrugge: Rituals, Role Models And Investing In Cannabis
17 Must-Watch Metrics In The New Trump Era
10% Correction Market Post Inauguration (Seeking Alpha)
Peter Schiff: Janet Yellen And The Federal Reserve Are Losing Credibility
Economists El-Erian, Dolan & Brusuelas React To March Fed Rate Decision

Credit Suisse noted large caps sold-off more than mid caps and this may be driven by greater relative China exposure along with valuations incorporating a greater premium. HC Equipment & Services and Pharma/Biotech remain overvalued. Credit Suisse data shows Semiconductors held up the best and this backs up the call from Citigroup to seek exposure to semiconductors for the near-term.

Follow the link below for a chart of past events and the percent pullback generated:

Finally, Credit Suisse noted small/large cap relative returns have been in the area of 6 percent in the 12-months following these types of pullbacks and that small caps remain more attractive vs large caps for the coming year.

Posted-In: Credit SuisseAnalyst Color Analyst Ratings


Related Articles (SPY + BROAD)

View Comments and Join the Discussion!