QQQM - Amazon And Tesla Are Likely To Reverse A Decade's Worth Of XLY's Gains
- We separate the XLY into retail and auto components and analyze their historical performance over the last century.
- Low dividend yields likely point to low returns until 2030.
- Unusually high long-term relative returns are typically followed by unusually low long-term relative returns.
- Strong cyclical inflation has likely initiated a long-term bear market in XLY that will accelerate over next few years.
- Whether Tesla is valued as a tech stock or an auto stock no longer matters much anymore, as both paradigms point to low long-term returns.
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Amazon And Tesla Are Likely To Reverse A Decade's Worth Of XLY's Gains