- Global markets continue to see their correlations rise. This even includes commodity and debt markets.
- While there are still merits to looking overseas and into alternative asset classes, I see an environment where sector investing has become critical.
- Recent returns, in 2020 and in early 2021, saw a sharp divergence in performance among U.S. sectors. This creates opportunities for alpha.
- With investors in a fairly euphoric state, planning ahead for some volatility makes sense to me.
For further details see:
Rising Correlations Make Sector Investing More Relevant