From Panic Selling To Panic Buying In One Week – Investing.com

From Panic Selling To Panic Buying In One Week – Investing.com

Last week, :

While the media is trying to pin headlines on the current bout of panic selling from the Fed to the Omicron variant, the reality is that we are in the midst of mutual fund distribution season.

We believe the rotation is not a sudden change in mindset but, likely the actions of mutual funds rebalancing their portfolios. Frequently at year-end mutual funds sell the winners which have become overweight positions and buy the losers which are below their proper weights. The large returns this year in certain sectors are making these actions more visible than normal.“