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"Rotation is the lifeblood of every bull market."
-- Ralph Acampora
** Please note that this QuiCQ was prepared before this mornings Middle East development. But I insist, so far, everything has been orderly and it looks to me more than like a healthy stock market correction than the onset of a new bear market. **
Last night I read a headline that went something like “stock market is down for fifth consecutive day”. In bold letters of course. To be honest, or TBH in Generation Z speech, in my short experience of 35 years in financial markets, this seems like the friendliest 5% correction (so far) ever. Of course, the stakes are high, with all that is happening on the geopolitical front, but then, they always are. In short, the current drawdown is in terms of the past five years more than benign and whilst it can always turn into something bigger, for now we would focus on sector rotation, the lifeblood of any healthy bull market. For more details, check out our CIO Chartbook for Q2-2024, out later today. If you are not sure where to get a copy thereof, ping me at ahuwiler@npb-bank.ch