We wrote changing of the guard last weekend and as of now, we are getting a little over a half of it.
We have seen some decent distribution in growth…but the good news, overall, still holding up…especially with AAPL and now TSLA on the move. But on the other end:
We are seeing continued money flows into areas that had previously been on the dormant side. REITS, UTILITIES, FOOD, BEVERAGE, HOUSEHOLD PRODUCTS, RAILS and other lower beta stuff.
The good news is that the patterns of major indices look fine. Nothing spectacular but fine. We call them big bases…all starting the end of January. Even the weaker areas, like the Dow, are shaping up better here.
We are now in what keeps being told, the bad months of August and September. Before getting all bearish, let’s see some serious distribution.
For sure, we took almost 30 past growth leaders off our proprietary list…FB and TWTR come to mind, but so far, no damage being done off of it. And may we add markets continue to not worry about tariffs. We repeat…small tariffs, no biggie. Very big tariffs…no promises.