Tactical Sector Opportunities as 2026 Begins: Playing a Late-Cycle Expansion with Discipline
We outline tactical opportunities from a longer-term perspective as 2026 starts with sector rotation towards pro-cyclical exposures.
Tactical Tuesday
Sector Investing in 2025: Bottom Performing Sector-Related ETFs of Last Year
Within ETFSector.com’s roughly 130-ETF universe, 2025’s laggards clustered in real estate, staples, software, and upstream energy as concentration favored AI infrastructure. These underperformers weren’t broken—just out of phase—setting selective rebound potential in 2026 if rates, breadth, or commodities turn improve.
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Tactical Tuesday: Why Rising Commodity Prices Historically Drive Energy and Materials Sector Outperformance — and Why the Pattern Keeps Repeating
December 9, 2025 Every market cycle has its rhythms, but few relationships are as reliable—and as frequently misunderstood—as the link between rising commodity prices and outperformance in the Energy and Materials sectors. Investors tend to treat commodities as macro noise or inflation signals, yet for the companies that extract, process, or transport those raw inputs,
Commodity Prices Surge to Multi-Year Highs: What’s Driving the Rally and Who Benefits
November 12, 2025 Commodity markets have surged to multi-year highs in the near-term, signaling a broad-based reflation across the raw-materials complex. The Bloomberg Commodity Index (BCOM) is up roughly 9% year-to-date and gained more than 4% in the third quarter, reflecting strength across metals and precious commodities even as energy and agricultural segments remain mixed.
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Why Investors Are Getting Nervous About a U.S. Equity Market Correction
November 4, 2025 After a relentless rally fueled by artificial intelligence enthusiasm, resilient corporate earnings, and a dovish monetary narrative, the mood across Wall Street has shifted toward unease. In the past week, several top banking executives, including Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick, have warned that the U.S. equity
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A Note on Municipal Bonds: Can New York’s Ambitions Outrun Its Balance Sheet?
October 28, 2025 Falling interest rates and restrained inflation have been a key context supporting the current equity bull market. A supportive Fed has guided rates lower in the absence of new inflation drivers which has been a boon to asset prices. Given our focus on potential interest rate risk, we wanted to talk about
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Tactical Tuesday: Why are Commodities Linked Stocks So Weak Despite Inflation Concerns?
September 23, 2025 In 2025, financial markets have exhibited a striking divergence. Commodity-linked equities, particularly in the Energy and Materials sectors (chart below, top panel), have underperformed the S&P 500 and other major benchmarks despite inflation running above central bank targets. At the same time, global equity markets have rallied, even in the face of
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Tactical Report: What’s Wrong with Low Vol. Stocks?
September 17, 2025 Global equities continue to print all-time highs with EM shares leading in the near-term, US shares leadership for the longer-term cycle and EAFE shares typically functioning as the lagging safe haven trade when the tape comes under pressure. At the sector level, the dynamic has been even more exclusive with Tech and
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Tactical Tuesday Report: The Case for Materials
August 26, 2025 The S&P 500 is showing some signs of rotation below the surface despite the index price continuing to sit near all-time highs. The story of August has been profit taking from the Tech Sector, specifically AI hyper-scalers and other attendant parts of the AI eco-system. The Fed has made dovish noises which
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Tactical Tuesday Report: Asset Managers Firming Domestically, Strong Globally
August 19, 2025 Low vol. stocks have lagged since equities have put in their low in early April of 2025. While we can see from our sector performance chart (below) that this has affected the performance of traditional low vol. sectors in a negative way, it has also had a deleterious impact on the Financial
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