FYI: While some have noted that the recent stock leadership has been too defensive in nature, it has been anything but that at the sector level, with cyclical sectors crushing defensive sectors by 11.58% in 2019 thanks primarily to Technology representing over a 30% weight in the cyclical basket.
Absent a material tightening of financial conditions or a deterioration in the restarted China-U.S. trade talks, we believe that cyclicals will remain in the driver’s seat for the remainder of the year even if total returns begin to moderate.
Regards,
Ted
https://www.fa-mag.com/news/cyclicals-continue-to-cruise-50641.html?print
