But in addition to the obvious, we also have actual proof and data to back up that statement.
This is one of the most important charts on the planet right now. We're looking at Consumer Staples relative to the S&P500, on both a market-cap weighted and equally-weighted basis.
Both of these just hit new all-time lows:
When it's a healthy market environment, where investors are being rewarded for owning stocks, these lines go down.
When stocks are under pressure and investors are being rewarded for selling stocks and having excess cash, these lines go up.
So if you're one of these people who think some crisis is coming soon, and you have a bad feeling about the market, and you're in the recession camp, or you hate Donald Trump, or whatever excuse you've made up to justify fighting trends, this chart above should be front and center.
Bottom line: If these lines in the chart above are going down, then your crisis is still just a made up thing in your head that doesn't actually exist. Like the tooth fairy or the easter bunny.
Meanwhile, another common myth out there among the sad little bears is that small-caps underperforming means some kind of impending doom
But the small-cap indexes have actually been outperforming since the summer.
Both the Russell2000 Small-cap Index and the S&P600 Small-cap Index made new all-time highs this week (See here).
And when it comes to the momentum factor, the performance is even better.
Look at the Small-cap Momentum Index fund breaking out of this multi-year base to new all-time highs.
Look at the top holdings: Industrials, Financials and Consumer Discretionary.
Are those risk-off sectors?
No.
This is RISK-ON behavior. And to bet otherwise is historically a very bad decision.
We're embracing the rotation and market strength.
This Tuesday night is our LIVE Monthly Charts Strategy Session.
This is one of the key benefits of being a Premium Member of ASC Research. You get the LIVE Video (and it's recorded so you can watch any time), 100+ charts to download, and all the details for each trade idea through our Exclusive Rangefinder App.
At All Star Charts, we're celebrating Thanksgiving with our biggest deal of the year.
That's 40% off our twice-monthly conference calls, proprietary market scans & trade ideas, and our RANGEFINDER APP to track all our trades in real-time.
