Have you heard of the “Great Rotation”?
It’s a fundamental change in investor attitude as traders shift away from equity funds to buying bond funds.
Well now, we might be seeing a “Great Mini-rotation” Meaning: a shift from a hot sector into an undervalued sector.
Technology stocks have propped up the overall U.S. stock market since March.
For months the largest technology and e-commerce stocks in terms of market capitalization have spurred on a massive v-bounce rally during “Corona time” that has simultaneously caused economic pain globally.
However, as the uptrend in these tech names come into question it may be time to rotate out of some leaders and into less-loved, economically sensitive sectors, like basic materials, gold, interest rates, and ETF’s.
Watch the full interview to see which stocks to look for as this market phenomena continues.
P.S. The stock market will gain more perspective on the economy as a bunch more names are on the earnings docket. (Look out for the reporting periods below)
And remember don’t trade off the back of the absolute value of the earnings, trade the market expectation and whether the company has delivered on what the market has already baked into the cake.
Monday: International Business Machines Corp. (NYSE:IBM)