The Big Wheel Keeps On Turning
Sector Rotation Update. We Keep An Eye On Where Big Money Is Moving Its Money To.
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Rotation As Of Friday 17 November
Earlier today we published an extensive note on sector rotation in our premium Inner Circle service - here. What follows below is an extract from the note, where we highlight four sector ETFs that we believe may be under institutional accumulation. This time last year we called XLK 0.00%↑ , XLC 0.00%↑ and XLY 0.00%↑ as accumulation opportunities; in the last twelve months, those three ETFs are up 40%, 39% and 17% vs. 14% for the S&P500, all on a total return (incl. dividends reinvested) basis. Now we’re looking for opportunities to repeat that trick.
The laggards, the names that no-one wants to buy lately? Those are the ETFs we’re looking for. The Inner Circle note we mention above (here) gives you all the context and background work and logic; but here’s the punchline: we think XLU 0.00%↑ , XLRE 0.00%↑ and XLF 0.00%↑ look to be under accumulation; and we think there may also be opportunity at XLE 0.00%↑ and XLP 0.00%↑ . Respectively, that’s Utilities, Real Estate, Financials, Energy, and Consumer Staples. Exactly. All yesterday’s news. Right?
Er, maybe. Below we lay out our ideas in each including our preferred entry points and price targets. Have at it!