Bone up on the term “market rotation” if you want to hold your own at the water cooler these days.
Deutsche Bank strategist Jim Reid and his team define that term best as a “big unwind in some popular trades.” In the last couple of days, investors have been intensely pulling money out of momentum stocks — those that have had the best returns over the past year — and into so-called slow-and-steady value stocks. It’s sort of like trading your pet hare for a tortoise.
For examples of the companies that fall into these categories, check out the holdings of iShares MSCI USA Value Factor ETF VLUE, +0.46% and iShares Edge MSCI USA Momentum Factor ETF MTUM, +0.42%.
The Wall Street Journal’s Daily Shot