Many mutual funds in usa have been reluctant to invest in big tech. Goldman Sachs Gr has pointed out that this has Cost to Underperform After Fierce Rally of those mentioned during this year, according to Ksenia Galouchko on Yahoo Finance.
Only a third of large-cap mutual funds are beating their benchmarks this yearcompared to the long-term average of 38%, wrote in a note the Goldman strategists led by Cormac Conners.
He average fund is 15 percentage points below Manzana, Microsoft, alphabet-A, Amazon, NVIDIA, Tesla and Goal (Facebook), according to Goldman. Those actions have been biggest gainers in terms of index points in the S&P 500 in 2023.
The US stock recovery this year has been led by a small group of tech giants As investors flocked to companies with a strong earning potential and exposure to artificial intelligenceand they moved away from the economically sensitive cyclical industries. He Nasdaq 100 is up 24% and is set for its best start to the year since 1998. It’s a stark contrast to 2022, when the tech benchmark posted its worst loss since the 2008 global financial crisis amid rising rates and earnings concerns.
“Central and growth fund underweight positions in the largest technology stocks have been a major drag on returns amid this year’s narrow market rally,” Goldman strategists said.
Instead of shifting to more defensive and growth sectors, which have led the rally in stocks this year amid recession fears, US mutual funds positioned themselves for a strong economic growth environment and rotated toward cheaper stocks, or so-called value stocks, according to Goldman. He S&P Value Index rose 3.3% this year, compared to a 11% gain for its growth equivalent.
Goldman Sachs Gr it closed on Wednesday at $319.60 in the red with a bearish gap and the crossing of the 70-period moving average below the 200-period moving average would give us a bearish signal. Meanwhile, Ei indicators are mixed.