Sector Rotation: Conservative Investments are Outperforming

The S&P 500 index closed lower again today, but in our view, we are experiencing only a small correction so far:

fusex-041817

The most important new development is the directional change of the long-term Treasury bonds yield index:

tyx-041817

Lower interest rates and the flight to safe investments due to geopolitical risks are two factors that contribute to utilities outperforming most sectors:

fsutx-041817

Consumer staples, another defensive sector, is also making higher highs and higher lows:

fdfax-041817

The weakest sectors that investors should consider avoiding in the current market environment are energy, transportation and financials, especially banking:

fsngx-041817

fsrfx-041817

fsrbx-041817.png

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