Remember “the Great Rotation”? That was the cute phrase they trotted out earlier this summer to explain away why tech stocks were crumbling: “It’s nothing! Don’t you worry! Foks are just buyin’ small caps, that’s all!”
Looking at the NDX/RUT ratio chart on a longer time scale, you can see the so-called Great Rotation lasted about two weeks. It was a blip. A nothing.
What really matters is that the data that counts all is screaming the same thing: equities, across the board, are wildly overvalued. It’s just a question as to when people will believe it, and keep believing it, for more than two trading sessions.
