So, which sectors is the big money going to stay with and which to sell away for the quick $? Healthcare has had a good run, but I still think some of the large biotechs are not richly valued (Gilead in particular, trading at a 9.
5 forward p/e.) Healthcare continues to do well, I think and has multiple tailwinds. Energy isn't going anywhere anytime soon and yesterday was a bounce. However, if you have a longer-term time horizon, continue to look to add, especially if WTI falls under $40.
Tech I don't really care about all that much and I still have concerns that in some cases, countries will lessen or drop use of some US tech company product because of security concerns and you will see more and more use of local tech companies by foreign nations.
Banks will waiver if interest rates are not going higher as quickly as people thought. REITs and Utilities will likely catch a bid again if it is "rates lower for longer." However, I would be very cautious with yield plays as I still see a lot of major REITs that I think are overvalued or at least very richly valued here. Japan has terrible fundamentals unfortunately and massive QE doesn't change the underlying problems.
I still like Asia, I'm unfortunately souring on Latin America. European QE doesn't make me want to run to Europe.
Random bad chart:
Chart of Arcos Dorados (McDonalds Latin America) since IPO:
http://finance.yahoo.com/echarts?s=ARCO+Interactive#{"range":"max","scale":"linear","comparisons":{"^GSPC":{"color":"#cc0000","weight":1}}}The other chart that I wish I remember where I saw it a couple of days ago was the Brazilian Bovespa in dollar terms, which is down significantly in the last few years. Just horrible.
