Right now, there is a tug of war playing out between cyclical stocks and what has become the defensive play, the technology sector, on a seemingly daily basis.
“Washington and the Fed continue to push money into the system. And if the economy stays weak, then bonds and defensives will do quite well,” says Bill Callahan, investment strategist at Schroder Investment Management in New York. “If cases slow down and the economy recovers, you’re going to see explosive moves higher in more cyclical equities and commodities,” says Callahan. For now, he jokes, big tech stocks are “the new Treasurys — any hint of bad news sends the tech stocks soaring.”
From a strictly markets perspective, the recent increase in virus cases has come at