Learnings and conclusions from this week’s charts:

1. Tech stocks (particularly software) remain under pressure.

2. Investor exposure to tech is at historically elevated levels.

3. Surging tech capex is coming at the cost of buybacks.

4. Private equity stocks are also coming under pressure.

5. Defensive stocks meanwhile are looking up.

Overall, it’s fair to say that we are at a challenging juncture in markets. Tech stocks are coming under pressure, and from a starting point of major overvaluation and historically high allocations.

So it’s worth keeping a closer eye on risk management and potential upside in defensives, while staying pragmatic with the otherwise still bullish outlook for cyclicals/global/commodities…

(click through to charts 👇)