RBC sees slowing growth as a key hurdle facing the rotation trade

seekingalpha07-15

RBC Capital Markets sees slowing economic growth as a roadblock for a sustainable rotation out of high-flying growth and large-cap stocks into other areas of the stock market. The Russell 2000 (RTY)(...

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The Russell 2000 (RTY)(...</p>\n\n<a href=\"https://seekingalpha.com/news/4124326-rbc-sees-slowing-growth-as-a-key-hurdle-facing-the-rotation-trade\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>RBC sees slowing growth as a key hurdle facing the rotation trade</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRBC sees slowing growth as a key hurdle facing the rotation trade\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-15 23:34 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4124326-rbc-sees-slowing-growth-as-a-key-hurdle-facing-the-rotation-trade><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>RBC Capital Markets sees slowing economic growth as a roadblock for a sustainable rotation out of high-flying growth and large-cap stocks into other areas of the stock market.  The Russell 2000 (RTY)(...</p>\n\n<a href=\"https://seekingalpha.com/news/4124326-rbc-sees-slowing-growth-as-a-key-hurdle-facing-the-rotation-trade\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TWM","symbol_name":"罗素2000指数两倍做空ETF","start_time":0,"source_url":"https://seekingalpha.com/news/4124326-rbc-sees-slowing-growth-as-a-key-hurdle-facing-the-rotation-trade","article_id":"2451162099","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2451162099","pubTimestamp":1721057696,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"RBC Capital Markets sees slowing economic growth as a roadblock for a sustainable rotation out of high-flying growth and large-cap stocks into other areas of the stock market.  The Russell 2000 (RTY)(","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TWM":"罗素2000指数两倍做空ETF","IWO":"罗素2000成长股指数ETF","DFAS":"Dimensional U.S. Small Cap ETF","XLF":"金融ETF","VB":"小型股指数ETF-Vanguard MSCI","SCHV":"Schwab U.S. Large -Cap Value ETF","RWM":"罗素2000指数反向ETF","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","VBR":"Vanguard Small-Cap Value ETF","VTV":"Vanguard Value ETF","SSO":"两倍做多标普500ETF","BK4535":"淡马锡持仓","UWM":"罗素2000指数ETF两倍做多","SDS":"两倍做空标普500ETF","TZA":"罗素2000指数三倍做空ETF","BK4559":"巴菲特持仓","BK4588":"碎股","BK4550":"红杉资本持仓","TNA":"罗素2000指数三倍做多ETF-Direxion","IWM":"罗素2000指数ETF","SPXU":"三倍做空标普500ETF","SH":"标普500反向ETF","OEF":"标普100指数ETF-iShares","SRTY":"罗素2000指数三倍做空ETF-ProShares","IVV":"标普500指数ETF","BK4581":"高盛持仓","UPRO":"三倍做多标普500ETF","BK4504":"桥水持仓","SPY":"标普500ETF","IWN":"罗素2000价值股指数ETF-iShares",".SPX":"S&P 500 Index","OEX":"标普100","IUSV":"iShares Core S&P U.S. Value ETF","IJR":"标普小型股600指数ETF-iShares"},"translate_title":"加拿大皇家银行认为增长放缓是轮换交易面临的主要障碍","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XLF":1,"SCHV":1,"IWM":1,"SPY":1,"IUSV":1,"IJR":1,"DFAS":1,"VB":1,"VBR":1,"VTV":1,"TZA":0.6,"TWM":0.6,"UPRO":0.6,"TNA":0.6,"SSO":0.6,"SRTY":0.6,"UWM":0.6,"SPXU":0.6,"SH":0.6,"SDS":0.6,"OEF":0.6,"ESmain":0.6,"RWM":0.6,"MNQmain":0.6,"MRTYmain":0.6,"IVV":0.6,"IWN":0.6,"IWO":0.6,".SPX":0.6,"OEX":0.6},"content_text":"RBC Capital Markets sees slowing economic growth as a roadblock for a sustainable rotation out of high-flying growth and large-cap stocks into other areas of the stock market.  The Russell 2000 (RTY)(IWM) rally late last week while the S&P 500 (SP500)(SPY) slumped following the June CPI inflation report spurred speculation that investors were ready to shift away from mega-tech stocks to seek out small-caps, value stocks and other lagging pockets of the market. While valuations and positioning for a while have set up a rotation to new leadership, fundamentals need to cooperate for the market to overcome false starts, Lori Calvasina, head of U.S. equity strategy at RBC, said in a note Monday.  Among its observations, large (XLF) and small-cap financial stocks tend to trade closely, in terms of relative performance versus the broader market, with consumer sentiment. Last week, the widely watched University of Michigan’s Consumer Sentiment Index fell to an eight-month low in July in a preliminary reading.  “Financials is a key component of the Value trade, and these challenges give us some pause in getting fully on board with the idea that the market is ready to embark on a sustainable leadership transition from Growth to Value within the Large Cap segment,” Calvasina said.  The strategy team also said small caps and value stocks in recent years seem to catch a tailwind when GDP growth is trending above average. “With GDP expected to dip into below-average territory in coming quarters, and concerns about the consumer increasing, we’ve been a little wary of the idea that now is the precise time to look for the rotation trade to finally get underway in a sustainable way,” Calvasina said.  But RBC said it grew “more comfortable nibbling on Small Caps” after the cooler-than-expected June CPI inflation, which bolstered confidence that the Federal Reserve will start rate cuts soon.  While small caps were starting to make a case for themselves over large caps from an earnings perspective, that case isn’t as clear in Value relative to Growth, RBC said.  Here are some ETFs that track small-caps: (IJR), (VB), (VBR)(DFAS) and some ETFs that track value assets: (VTV), (SCHV), (IUSV).","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.28.3","shortVersion":"4.28.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2451162099"}