What’s Really Driving The Omicron Market Selloff

While the media is running around trying to pin headlines on the market moves from the Fed to the Omicron variant, the reality is that we are in the midst of mutual fund distribution season. As Michael Lebowitz noted: “ We believe the rotation is not a sudden change in mindset but, likely the actions of mutual funds rebalancing their portfolios.Frequently at year-end mutual funds sell the winners which have become overweight positions and buy the losers which are below their proper weights. The large returns this year in certain sectors are making these actions more visible than normal.“