With the market selling off into the close today, it’s too early to write my usual “best five sectors” article. The risk of ranking changes is too high. I will make sure that an update will be posted before the markets open on Monday. Instead, I want to build on this week’s RRG video analysis, where I examined the current strength of commodities and looked at growth, value, and size rotation. You can see that video here. Rotation Signals Commodities Springing Back to Life! The synopsis of that analysis? Large-cap growth stocks are once again the preferred segment of the market. This underscores what’s happening right now — when the market is under pressure, investors usually flock to large-cap stocks. They’re familiar and supposedly less risky. Cap-weighted vs Equal weight Sectors Let’s dive deeper by comparing cap-weighted sectors with their equal-weighted counterparts. The two RRGs above illustrate these relationships. At…
