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Buy The Clunker, And Wait. Oh, And Sell The Hot One When Literally Everyone Says It’s Hot.
This sounds unbelievably dumb, but can in fact be a great strategy when it comes to buying and selling sector ETFs. If you want to read a more detailed and pseudo-scientific version of this strategy, check our recent post on Sector Rotation, here:
In that note above, we highlighted XLU 0.00%↑ as being towards the end of its likely correction and said that it was looking buy-able.
Utilities, as you may have noticed, are being tossed under the bus right now. Literally no-one wants to own regulated stocks yielding in the mid single digits, because, you know, CDs pay 5%. Who on Earth would be buying utilities right now?
Well, we can tell you.