While we prefer XLB to XLE, both sectors haven’t done enough to trigger a positive allocation in our model
Despite some rotation away from Mega Cap. Growth, we haven’t seen any sustained benefits to XLE in the short or intermediate term.
Higher prices in 2024 have been driven by Growth, Large Size, Momentum, Quality and Free Cash Flow. Equity market corrections have benefitted Value, Low Vol. High Beta has been a structural laggard in this cycle.
The Dow Jones Industrial Average hit a record high on Thursday, rising 243.63 points (0.59%) to close at 41,335.05, boosted by gains in Goldman Sachs,
The tech-heavy Nasdaq Composite fell 1.12%, the S&P 500 dropped 0.6% and the Dow trimmed 0.39% on Wednesday. At the sector level, XLF and XLV
US equity indices edged positive Tuesday afternoon to finish at best levels of the day. Markets likely will tread water into NVDA earnings after the
Equities closed mixed across the major US indices. The Dow added 0.16% while the S&P 500 fell 0.32% and the Nasdaq Composite pulled back 0.85%.
Equities closed the week with a flourish as the Nasdaq responded to Thursdays decline by leading large cap. equities higher on Friday adding 1.47% while
Company Fundamentals have been resilient despite softer economic conditions. We continue to watch the level of interest rates, believing the bull market narrative is dependent on rates staying lower to support any sustained consumer recovery.
Equities pulled back on Thursday with the major US Indices all notching declines. The Nasdaq Composite dropped 1.67% while the S&P 500 gave back 0.89%
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