Sector rotation is important to gauge the current economical strength that we're in.
This is the 60 day sector rotation summary. (180 day also looks pretty much the same.)
It's very clear that we're in a bear market right now, which doesn't happen often (1-2 every decade)
You can clearly see that that Discretionary / Tech / Industrials / Materials, are all going down where Energy / Staples / Healthcare / Utilities / Financials are going up.
Also, looking at precious metals (not on the charts) you'll notice that gold and silver are breaking out of their flags.
Always look at these 2 charts every couple months to detect where we stand in our economy.
So what now? Cash is king, raise as much as as you can. There's a strong possibility that we might enter a recession, many variables play in this as war tensions from Russia/Ukraine, and China/Taiwan seem real. And the fact that inflation is high and the fed will increase rates faster than we thought.
This is the 60 day sector rotation summary. (180 day also looks pretty much the same.)
It's very clear that we're in a bear market right now, which doesn't happen often (1-2 every decade)
You can clearly see that that Discretionary / Tech / Industrials / Materials, are all going down where Energy / Staples / Healthcare / Utilities / Financials are going up.
Also, looking at precious metals (not on the charts) you'll notice that gold and silver are breaking out of their flags.
Always look at these 2 charts every couple months to detect where we stand in our economy.
So what now? Cash is king, raise as much as as you can. There's a strong possibility that we might enter a recession, many variables play in this as war tensions from Russia/Ukraine, and China/Taiwan seem real. And the fact that inflation is high and the fed will increase rates faster than we thought.
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