Here is an interesting chart from Luke Kawa. It shows monthly returns of Goldman Sachs’ basket of retail favorite stocks. It’s down 12% this month through yesterday, which would make it the worst month since April 2022.
Note that the bad and good months tend to cluster as momentum takes over. There were a couple spectacular months just after the peak of the Iran war and with the release of Claude Mythos but profit taking has hit memory stocks and the war continues.
Retail has had an incredible ability to buy the dip but this week we got a lower CPI report and the momentum was quickly snuffed out. Today as well there was a brief attempt to bounce from the lows but it didn’t last.
