AMCCF - XLB Is Likely Standing On Its Last Leg
- XLB is composed of four industries, the most important of which is the Chemicals industry.
- Chemicals stocks are showing distinct signs of slowing, suggesting a possible peak in the market cycle.
- At the index level, this weakness has been blunted for the time being by strength in a handful of commodity-oriented subindustries.
- More generally, XLB is overvalued and will likely see flat to negative returns in the remainder of the 2020s.
- Despite this negative outlook, XLB will likely outperform the S&P 500 and especially tech stocks.
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XLB Is Likely Standing On Its Last Leg