Thursday, January 5, 2012

Sector Evaluation

There seems to be an interesting trend that is developing when looking at sector performance.  It seems like the cyclicals are gaining strength led by Materials, Industrials, and believe it or not Financials.  The staples on the other hand seem to be declining in strength.  There seems to be a rotation out of the safety stocks and into stocks which contain more risk.  This elevated acceptance of risk is a great sign for the economy..  Much of this optimism is based on the fact that the ECB seems to be helping Europe, and the economic fundamentals in the US seem to be getting better.  Now it is still a bit too soon to tell if this move is a start of a trend but it's definitely a plus and something to look forward to.

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