Excerpt from Business Insider quoting DataTrek’s Nick Colas:
….. “The upshot here is that Health Care may look like a safe harbor in the current storm, but its current weighting shows it is very likely at a relative top versus other S&P 500 sectors,” wrote Nicholas Colas, co-founder of DataTrek Research, in a note to clients on Thursday.
At the same time, a weighting of that size typically points to upside for the broader market, which would be a welcome sign for investors. After all, the S&P has plunged nearly 9% since topping out in late September.
“It’s not hard to understand why Health Care has done so well,” Colas wrote.
“Growth oriented managers have to go somewhere when they sell their Tech holdings. Not many other sectors offer reliable growth. Specialty retail used fit the bill, but not as much any more”….
Read the whole article here on Business Insider!