Is this Speculative Convergence?

by: Michael Panzner

In recent months, a number of "hot" markets, including U.S. large cap technology shares, emerging market stocks, gold, and the euro, have moved increasingly in synch.

While it is possible this convergence is either coincidental, or reflects a series of overlapping fundamentals, another explanation is that there is a growing rush by trend-chasing traders into a core group of speculative favorites being fueled by their own momentum.

If that's the case, then things could get pretty ugly when the music finally stops.

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