You may want to rethink your strategy and make some adjustments to your portfolio. Robert Hand addresses the shift of leadership early this year from consumer stocks to technology stocks, and how relative strength can identify emerging trends. The less visible form of bear market is often referred to as a sector rotation and is less visible because the changes cannot be easily quoted in television news.
Sector rotation occurs when there is a change in leadership of an industry group.
The stocks of the old leaders, consumers, are falling in value while the stocks of the new leaders, technology, are rising in value. You'd miss this sector change completely if you didn't use relative strength analysis. 5 year subscription to Working Money. Free book selection. Limited time offer.