Sector Rotation May 2021 - Where is the money flowing?

2021年5月4日

My last video about Sector rotation was in March 2021 where I talked about the Consumer Staples sector. PG and JNJ have so far performed to expectations. It is worth looking at the model once more now to see where the next potential money flow will be.

From March 2021:
Sector Rotation theory suggests that from market bottoms the two sectors that should lead are Consumer Discretionary and Technology. These two sectors did in fact lead the market out of the COVID crash. The next sectors to lead as the market matures are Industrials and Materials. These too followed the theory through 2020 as the bull market grew. At the market top Energy is supposed to lead and sure enough we have seen quite the run on Energy related stocks. What that means going forward if the theory holds is that Consumer Staples and Healthcare should outperform the market.