The sectors working in the current market environment are precious metals (gold and silver), energy (Oil & gas drilling and exploration), banks, financial, home builders, retail and consumer discretionary. See the chart below.
A few Growth Momentum Leaders are working but as an asset class this group is still in trouble.
Stock categories like “Small Cap Companies (IWM)”, and “Overall U.S. economy (SPY)” are working due to the valuation play. Companies have a lot of cash on their balance sheet, so at their current stock price they are attractive from a value standpoint.
“Hi Yield junk bonds” are working because of their high yields. Here again we see a value/income play.
“Gold” is working because of monetary easing by central banks all over the world.
“Growth Momentum Leaders" as a group is still in trouble though a few select stocks in this category are working. We need to wait for growth in the economy for this class of stocks to start working again.
“Treasury Bonds” are not working because the market considers them to be extended in price, currently.
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