Focus on the strongest
While they let up a little bit on Monday, investors have been greatly favoring those firms most likely to survive the shakeout coming for U.S. businesses. An index of stocks with strong balance sheets from Goldman Sachs hit a new high on Monday, while an index with weak balance sheets is still in a bear market. This has never happened before. The last time there was even a small divergence was March 2019. On Tuesday, we'll have a closer look at times when strong balance sheet stocks are leading the overall market.