Yesterday, we took time to review the Economic Status Board. Today, I want to dive into numbers from Q1 in markets and sectors.

 

If you’re wondering why you’re having such a difficult time this year, I’m certain this will help you understand. If you weren’t ahead of the energy curve, you’d have a pretty hard time finding the ‘right’ markets or sectors to put your money.

 

Market and Sector Review and Analysis (Q1)

Markets winners in Q1: Silver, Natural Gas and Crude Oil

Market losers in Q1: well…everything else?

 

All four indexes are in the red for 2022. The bigger story, however, can be unearthed when considering sector performance in the quarter – and it’s not pretty.

 

Sector analysis shows you why you’ve likely had a harder time than usual trading in 2022:

You’re going to put your money, where, exactly?

This is why we preach patience. It is also where I see the best opportunities in the months ahead.

At some point, technology and cyclicals will reverse. Resolution in Ukraine will impact energy and basic materials (negative for energy but positive for basic materials).

Utilities and Financial should remain stable and outperform short-term, especially dividend-paying stocks. Consumer Defensive is a category to watch in the next 3- to 6-months, again, focusing on companies that pay dividends.

Long-term, however, you should expect tech stocks to lead the market back to new highs. I’m looking out 6- to 18- months from now. Thus, patience.

Tomorrow, I’ll have a small cap stock recommendation for you.

Trade Smarter

John Hutchinson
Traders Reserve