From the desk of Steve Strazza @sstrazza
At the beginning of each week, we publish performance tables for a variety of different asset classes and categories along with commentary on each.
Looking at the past helps put the future into context. In this post, we review the absolute and relative trends at play and preview some of the things we’re watching to profit in the weeks and months ahead.
We continue to harp on the risk-on themes that support our bullish macro thesis.
As participation continues to expand in both the US and abroad, we’re being given more and more avenues to position ourselves in order to profit in the current environment.
While Tech and Growth still remain the secular leaders, even the perennial laggards such as Financials and Energy are offering us favorable opportunities from the long side these days.
Bulls are flushed with options to make money in this market, while the list of talking points continues to dwindle for bears.
In what’s become a very favorable trading environment, we want to focus as much on the risk profile of the bets we employ capital on as anything else. Identifying and leaning on highly skewed risk/reward setups is the best way to put our money to use right now.