Technology Beats Utilities As Confidence Rises

This is an abridged version of our Daily Report.

Tech ramps against staid Utilities

The ratio of Tech to Utes has soared in the past couple of years, similar to the 2000 bubble years. It’s not quite that extreme, though, and there were other periods when investors greatly favored the riskier sector.

Those mostly saw rising stocks going forward, but Tech did struggle and Utilities did better.

Consumers shrug off declines

Stocks have been shaky in March after falling hard in February, but consumers keep getting more confident.

That seems like it should be an automatic sell signal from a contrarian point of view, but it has not been. Stocks have rallied almost every time after seeing a price decline with high and rising confidence.

Energy is stuck

The S&P 500 Energy Sector, and related ETFs like XLE, have been stuck in a tight range for more than a month after having suffered a correction.

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The post titled Technology Beats Utilities As Confidence Rises was originally published as on on 2018-03-21.

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