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Reflections #27 - Tech roaring while energy and financials boring

The Nasdaq is flying higher and 2022 is becoming a distant memory.

What a turn in fortune! After being down 33% in 2022, the index is now up 31.7% ytd.

The rally in tech is impressive to say the least, spurred by too negative sentiment coming into the year, positive earnings revisions, the AI hype and the outlook for relocation of chips production back onshore in the wake of the US chips act.

Energy - the star in 2022 - is left behind due to slowing demand and higher storage levels which capped the rise in energy prices. Even the Opec cuts could not help energy prices beyond a knee-jerk rise.

Financials stills struggling to make it into positive territory after the mini crisis in March. In fact, many commentators remain sceptical that the banking crisis is over.


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