I’m checking in on markets here as I’m heading back from the beach here in Italy. It was a very relaxing weekend, but it’s time to dive back in head first into these markets now.
I was able to complete my weekend analysis before catching my fair share of rays, and I must say that there were some very noteworthy shifts in money flows last week.
Will Powell’s Put Hold?
Last week, I shared some of the somewhat concerning capital flows in the market. We had healthcare come roaring back, but it was rather quiet for the defensive sector last week.
Instead, we saw energy come back alive, as the sector arguably remains the most “on-sale” one in the entire market. Stocks were on parade on Friday following Powell’s pivot, which gave Fed doves exactly what they wanted to hear.
But here’s the problem – tech didn’t lead the rally Friday. Actually, the Nasdaq, which is heavily-tech focused, was anything but spectacular last week.
Remember, sector rotation is the life blood of bull markets – but we’re past the point of throwing paint at the wall and expecting a masterpiece in this market. It’s turning into a stock-pickers paradise, and fortunately, you’re in the perfect place for it.
Keep you posted!
Talk soon,
-Gianni
