Earnings growth is outpacing stock gains, P/E at 20.5 is not extreme, and historically bull markets extend to 4-7 years after the three-year mark; current worries are overblown.
Small-cap stocks are outperforming large caps in all 11 GICS sectors, indicating a genuine size-based factor rotation; two-thirds of issues are above 200-day moving averages, and quality matters as shorted stocks lag.
JMOM is a rotating momentum factor ETF with 90% turnover that is currently rotating into healthcare, telecom, and discretionary. It has reduced exposure to memory/tech names like AMD and Micron. It behaves like a fast but airbag-equipped vehicle, and it is uncorrelated with equal-weight strategies, allowing a diversified two-strategy portfolio.
Momentum factor ETF is rotating into health care, telecom, and discretionary, reducing meme-stock exposure, and works well paired with equal-weight for uncorrelated outperformance.