Sector Detector: Financials and InfoTech look strong
Sabrient’s fundamentals-based SectorCast-ETF model appears to have softened its conservative posture in the wake of last week’s market weakness. Sectors like Financials, InfoTech, and Energy that are more dependent on economic stability and growth are scoring higher this week (based on Friday’s closing data), pushing traditionally defensive sectors lower. Notably, after correcting the hardest, stocks in the Materials sector have been receiving upward revisions from the analyst community, which is lifting it from the bottom of the rankings for the first time in a long time.
Although Sabrient remains cautious on the market given the tenuous state of the U.S. and global economies and the higher stock valuations, the re-emergence of sectors like Financials, InfoTech, and Energy in the SectorCast-ETF rankings would appear to be near-term bullish. Nevertheless, an absolute return approach, like Sector Detector’s model portfolio, remains highly desirable. Read more…
