The Most Brutal High Beta Momentum Sell-Off Ever Recorded?
The market is currently experiencing what looks like the worst high beta momentum stock sell-off ever recorded. Worse than the Great Financial Crisis, the tariff tantrum, COVID, and the dot-com bubble. That statement alone sounds almost impossible, but the data behind this move is genuinely difficult to comprehend. I don't think there are many words that can properly describe how extreme and unusual this sell-off has been. This started happening at the end of June and has continued with relentless selling pressure across high beta and momentum stocks. What makes this even more interesting is that there isn't one clear fundamental reason that explains the magnitude of this move. Yes, the Iran deal fell through, although that was not exactly unexpected. Rate hikes are still a possibility this year. The Iran conflict doesn't appear to be ending anytime soon, and historically this is one of the weakest periods for equities during a presidential midterm cycle. However, none of these factors
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