“Old and Physical” versus “New and Digital”
After an increase in volatility and steep drop in global equity markets and partial bounce the trend of “old and slow” versus “new and digital” remains intact.
Russell 2000 Small Caps (IWM) versus equal-weighted S&P500 (RSP) at the lows.
Now if we compare RSP with QQQ (Nasdaq) the trend is even stronger.
After recent volatility (never seen outside of extremely crazy periods in the last century) it was actually exacerbated.
The “new and digital” scale better outside the “physical world”, most of them have much better margins, thus higher profitability, balance sheets, thus suffer much less from people staying in homes due to COVID-19 which is expected to kill short-term revenue.