It was a weekend full of worrying headlines, from escalations on the geopolitical front to negative developments on trade negotiations.
But at some point, we need to ask ourselves, “Who is this periodic media hysteria serving?” Because it’s not helping you or anyone, make decisions in your portfolio.
It’s definitely an art form to be able to “hear” what’s going on versus actively listening to it.
In the meantime, let’s take a look at the updated sector scoreboard…
Take Some Time to Relax this Summer
I’m not going to go as far as to say that “everything is awesome,” because we know it’s not. But what we do know is that markets do not move based on facts, reason, or common sense.
Emotions – primarily fear and greed – are what drive markets much more.
My theme last month was to “Buy in May and Stay.” Well, I think we’re in the stay part now. At least, that’s what the sector leadership board is saying.
Real estate (XLRE) popping into the one-week leader sends a strong sign that bonds are carving out a bottom. Last Friday, I published an article talking about how a bond market rally could help the tech sector, which remains the leader over the past month.
We still see industrials (XLI) leading year-to-date, and financials (XLF) just reclaimed the one-year leader position. None of these are bearish.
Stay tuned,
-Gianni
