U.S. Stocks Resilient: Buy-the-Dip Strategy Prevailsđ€
On the equity side, despite big earnings misses from Cisco and a drop in Nvidia after Microsoft unveiled its first custom-designed AI chip, equity prices maintained their gains as investors remained squarely in a buy-the-dip mode as we alluded to. In fact, GS research suggests that HF positioning in mega-cap stocks are now back at record highs, with the largest 7 stocks returning a whopping 71% YTD versus an already very respectable 19% return in the S&P 500. While it might not feel like it, but US capital markets have been extremely friendly to buy-and-hold investors this year despite all the alarm bells being raised over the economy. Just follow the beta...
