A Rotation Into Low-Multiple Stocks

There is certainly a lack of confidence in leaders and in the execution among market participants, but it has not led to a huge drop in the markets. And while we are down on the day, we were much worse in the pre-markets, and many names are showing resiliency.

We are seeing multiple compression in individual stocks, though, with the money seemingly flowing into much bigger names that have a more pressing influence on the overall indices. So while the many high-multiple and individual names have gotten destroyed, it does not appear that that money is moving to the sidelines. Rather, those dollars are moving toward the heavier weighted names in the sector, many of which hold low multiples. Technicals and fundamentals are still very much in play here....320 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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