Staples finished 2024 as a laggard, but the sector could benefit if rising rates stoke recession fears and spur investors to de-risk their equity portfolios.
Industrial stocks look like a potential rebound candidate in the near-term. Structural transitions towards clean energy, disaggregation of the global supply chain and demand for housing and infrastructure are all still in place.
We’ve hedged our short in Materials stocks by carrying a slight long in the Energy Sector despite weak near-term investor demand.
The best thing going for the S&P 500 Materials Sector as it enters 2025 is that it ended 2024 unloved with prices at oversold conditions.
We would wager on outperformance only if bearish scenarios surfaced in 2025
Sector is washed out near-term, but we don’t think it keeps pace to the upside if the bull market resumes in 2025.
Bullish momentum for US equities is strong and we expect the good times to last through year-end at least.
Technicals underpinning the current outperformance trend are strong. The backdrop of long-term sector-level underperformance makes this a very intriguing setup for the bull.
Investors have broadly preferred higher beta exposure over the past 3 months
Real Estate Sector December Outlook—6-Month Bullish Reversal Showing Signs of Fatigue Read More »
Not enough going right technically or fundamentally to believe in a durable rebound for the Healthcare Sector
Healthcare Sector December Outlook—Healthcare Stocks Continue to Lag Read More »
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