The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

As British rate expectations parted ways with central bank guidance, short-dated U.K. government bond yields began to rise more quickly than longer-dated ones.
As British rate expectations parted ways with central bank guidance, short-dated U.K. government bond yields began to rise more quickly than longer-dated ones.
(iStockphoto)

Today’s market conditions a prelude to 'strong gains'

Strategists are still fixated on market rotation, as investors sell the leaders and buy the laggards. Here’s why: It tends to signal strong market gains ahead.

“Investors have chosen to take profits and invest in laggards,” said strategists at Pavilion Global Markets, in a note. “Our historical analysis shows that these de-risk/re-risk periods are usually followed by strong gains in equities.”