Retail investors with less experience may be struggling to adjust because they’re familiar with the prominent technology companies. However the market often passes through multiyear cycles. Understanding changes in investor sentiment can help traders avoid areas of weakness and focus on new opportunities.
In December, Market Insights noted how money was shifting away from large, well-known companies to smaller and less-known companies.
The DJ Automobile Manufacturers Index ($DJUSAU) has gained 88 percent in the last three months. That’s the biggest gain of more than 150 industry indexes on the TradeStation platform. The Auto Part Index ($DJUSAP) was the second-best performer, up 78 percent. In contrast, the broader S&P 500 has risen 12 percent in the same period.
Q2 Holdings is growing rapidly and reached revenue of $194 million by the end of 2017. Though the company remains unprofitable, it expects organic revenue growth to accelerate to 26% year-over-year in Q4 2018.