Defensive Rotation Continues

JC Parets
February 2, 2024

February is one of the worst months of the year to own stocks.

Is that why we've been seeing all this rotation into defensive sectors?

Think about it, we haven't seen any rotation at all into Consumer Staples this entire bull market.

Until now.

And if you go back and study the history of bag holders, you'll notice that they love buying stocks when Consumer Staples finally start to become leaders.

This is classic rotation you see quite often ahead of a tough time for the market:

Part of the reason we had been so bullish and buying stocks so aggressively was because there hadn't been any rotation into Staples.

So what's wrong with putting on some short positions when the rotation finally comes?

That seems to make the most sense to me.

We'll be discussing this all on Monday night during our LIVE Monthly Strategy Session.

Premium Members make sure to REGISTER HERE.

And if you have any trouble getting in, just email Mary directly and she'll set you up.

JC

 

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