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Tag: rotation

The great rotation into financials has begun — here's why it's a big deal for the market

The great rotation into financials has begun — here's why it's a big deal for the market

Finance
The financial sector's version of the NASDAQ finally climbing over its dot-com bubble high looks like it's about to happen. That's a big deal not just for bank stocks but for the market as a whole.Breakouts are great for investors who are looking for a powerful trend. And the longer it takes for a sector to bottom out — trade in no-man's-land — and finally break out, the more powerful that trend will be.Why? Because everyone who would've, could've and should've exited the sector has already done so. The sellers who were just looking to get back to even are gone.No stock market sector was hit harder than financials during the last recession. Let's recall the names of companies that are no longer around but once were iconic American institutions: Lehman Brothers, Bear Stearns, Wachovia (abso
Drones, solar and apps: It's not your father's sector rotation anymore

Drones, solar and apps: It's not your father's sector rotation anymore

Finance
Many individual investors fail to manage their equity portfolios with an awareness of "sector rotation" — ups and downs in different sectors' performance, stemming from changing economic conditions and inevitable shifts in market favor.Historically, determining which sectors were likely to do well at a given time was basically a function of the economy. Different sectors tended to perform well at different points in the economic growth cycle, from recession to expansion and then back down again, affected variously by such factors as commodity prices, the broad state of corporate earnings, interest-rate shifts and consumer confidence.Some of this wisdom may still apply, but things are much different now, especially regarding consumer sectors. As relentless technological advances change cons