In some market environments Technology, and other sectors full of growth stocks, tend to outperform.
Usually interest rates are falling in that type of market.
You got a good dose of that for about decade.
US Stocks were the global leaders while Europe and other parts of the world, without that exposure to growth, made little progress.
And now with interest rates rising, other sectors have emerged as leaders. Industrials, for example.
This is all perfectly normal for this type of environment. We’ve seen it before, and to expect anything else would be irresponsible.
There was a time where Tech stocks were the leadership group.
That time is behind us.
You could wish and pray and hope that it becomes that environment once again.
Or you can live in reality.
That’s up to you.
Look at Materials, for example, holding above all that former support from the past couple years. If $XLB is above 80, this is sector we need to own: [Read more…]