Excerpt of the latest article from CNBC’s Jeff Cox quoting DataTrek co-founder Nick Colas:
….”Should tech capsize, Nick Colas, co-founder of DataTrek Research, has looked at alternatives to the group and come up with a couple: financials and industrials. In his daily note to clients, Colas explains:
• Financials are working right now (+6.7% over the last month), thanks to a steepening yield curve and decent earnings. They are cheap to 12-month forward earnings (12.7x) and are one of the few sectors still below their 2007 highs. The group also has an outsized weighting in Value indices, likely winners of capital rotation in a Tech meltdown.
• Industrials aren’t especially cheap (16.5x forward earnings), but the group is still +6.5% over the last month and now even up on the year (0.5%). Trade tensions obviously still weigh on the sector, even with recent positive news on that count.
The other sectors, such as energy, materials, real estate, telecom, staples and utilities, lack sufficient market cap to…..”
Read the whole article here on CNBC!