TSM Diamond Holder
Rate Of ReturnAfter rising too much, there will be an adjustment as funds flow into other sectors. Will it be over before the market opens?
$Invesco QQQ Trust(QQQ.US) Large US pension funds (CalPERS, Teacher pension, etc.) and target date funds typically rebalance at the end of the month/quarter. After a significant stock market rally, if the equity allocation exceeds the target proportion, they will mechanically sell stocks and buy bonds, creating technical selling pressure.
This is a market pattern with some basis, and Wall Street traders will also anticipate this flow direction in advance.
With US stocks soaring over the past two weeks, as we approach the end of the month/quarter, pension funds will perform rebalancing — selling stocks and buying bonds to restore the target allocation ratio (the mentioned "6/4 allocation" refers to the classic 60% stocks/40% bonds ratio).
$VG S&P 500(VOO.US)$Amazon(AMZN.US)$Taiwan Semiconductor(TSM.US)$AMD(AMD.US)$NVIDIA(NVDA.US)$Tesla(TSLA.US) Enjoy the night! 🫡
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