During bull markets you regularly see the laggards catch up to the leaders. That sort of rotation is perfectly consistent with bull markets throughout history.
During bear markets, it's often the remaining leaders that ultimately catch down to the original losers leading the market lower.
And that's the big question right now. Is the fact that the U.S. is lagging lately just the beginning of more selling coming for stocks?
Or does the lagging U.S. catch up to the leaders all over the world.
Look at the expansion in participation across continents:
I think about it like this.
There have been and continue to be opportunities in stocks with exposure to these types of markets.
Remember that they are very different to the mega-cap Tech-heavy U.S. indexes. Foreign markets generally have a lot more exposure to Industrials, Financials and Natural Resources than American indexes.
As you can see, we continue to focus on the things that are working, and rotation is working. It often does during bull markets.
While all this is happening, we've already started to see relative strength from Semiconductors over the past week. So that rotation continues, with Tech stocks included.
We have a lot to talk about tonight during our LIVE Conference Call.
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