Excerpt from Barron’s quoting DataTrek’s Nick Colas:
….”Stocks tracked by the Consumer Staples Select Sector SPDR ETF (XLP) haven’t fared as well, falling more than 5% in 2020, but DataTrek Research’s Nicholas Colas argues that investors could find a worse place to hang out in the coming weeks. He notes that if this market rally follows the pattern of the one in 2009, a lull may be approaching.
“This isn’t a ‘Sell’ signal, but rather a ‘Hold,’” he writes, and one that could be good for sectors that have lagged in recent months. On the list are consumer staples, health care, utilities, energy, and technology. He’s more cautious on recent winners, such as financials, industrials, and consumer discretionary, which could take a pause after recent gains”….
Read the full article here on Barron’s.