As a new volatility regime is building up for the broader stock market, investors might have noticed a particular behavior during the sharp action days brought about by the DeepSeek debacle with the United States technology sector. This behavior, what traders choose to buy or sell during periods of high tension, can give investors a massive insight into what’s coming next.
With this in mind, it will become clear that high valuations in so-called growth stocks have seen their premiums fade as the broader market is now looking to gain exposure to other areas in the market, ones that show a bit more upside without the potential declines and downside risk. Such a preference led traders and capital to value stocks, as can be seen by the relative performance between the iShares S&P 500 Value ETF (NYSEARCA: IVE) and the iShares S&P 500 Growth ETF (NYSEARCA: IVW) last week.
