From the desk of Steve Strazza @sstrazza and Louis Sykes @haumicharts
Over the last few months, there’s been a distinct rotation into Financials and other cyclical areas across equity markets not just in the US, but across the globe.
This topic is nothing new around here as it’s been a big theme for us recently. Consider some of our calls from this month:
- Buy Energy and Financials and anticipate potential outperformance from these long-term laggards.
- Position for a structural trend reversal in favor of value.
- Intermarket signals indicate higher interest rates.
- Breadth suggests Energy stocks are in a new bull market.
- Internals support new highs for Financials and a sustained rotation into value.
- A new Commodities supercycle is underway.
- Bank stocks are breaking out and leading European Equities higher.
I think you get it. We’re quite bullish on risk assets at the moment.
Long story short, the expansion in participation from cyclical stocks and commodities has provided us with a swath of new opportunities… and we’ve been jumping at them.