A new sector comparison chart was initated at the start of this year. It was a rather daring move to turn bullish against prevailing sentiment at that time, but the mood among investors and pundits appears to have entirely shifted by now and offers further confirmation that we might be in for a real rally. After all, sectors across the board had been pointing higher for several months already, so it was rather straightforward for me to wrap up the bearish case.
Surprisingly, Energy (XLE +24.97%) is beginning to lose steam as of January 31, while Materials (XLB +30.32%) and Industrials (XLI +27.60%) are the frontrunners this time around. The aggressive portfolio might want to be overweighted with these sectors going forward. Laggards of this rally are Utilities (XLU +5.51%), Consumer Staples (XLP +9.58%), and Health Care (XLV + 16.61%).
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