Excerpt from CNBC quoting DataTrek’s Nick Colas:
…. “Nicholas Colas, co-founder of DataTrek Research, noted in the same “ETF Edge” interview that “the [recent] rally in financials has driven the rally in value.”
Because nearly a quarter of the IVE is made up of U.S.-based financial stocks, Wall Street shying away from the prospect of an imminent recession has actually given value a boost, Colas said.
“That’s really helped … European financials,” which have rallied nearly 10% since the start of September and given U.S. financial stocks a boost, Colas said. “There’s still a lot of concern, it’s something to watch, but it gives these stocks a chance to bounce.”
It’s also helped small-cap names, which are tracked by the Russell 2000, but momentary reprieve does not make a market trend, Colas warned”….
Read the full article here on CNBC!