Climbing The Ladder:

Since the depths of the February-March meltdown lows of roughly 3 months ago, below we have a look at how each of the major 11 S&P sectors has performed. The energy group could be a dead cat bounce, as YTD it is still lower by more than 30% and easily is the worst actor of the bunch. Consumer discretionary however has been a star, advancing 24%. Sure a lot of that has been the resilience and tenacity of AMZN, and there has been a “dash for trash” too, but let us give the space credit where it is due. From recreational plays like a WGO YETI PII or THO, to electronic plays like an IRBT or SNE, to international internet retail plays like JD or VIPS, or discount plays like OLLI or DG, or casual diners like CMG DPZ WING and PZZA. I think one gets the picture. Now I am not here to speculate on what is responsible for the groups resurgence, whether it could be stimulus, boosted savings rate, etc, but the PRICE action is indisputable, and many will look for groups that have lagged, but I would rather put my hard earned capital on the area that has proven itself already. Remember trends to tend to persist, more likely than they are to reverse, and go a lot further too. Trade accordingly.

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