Not all market rallies are created equal.
Since the end of March, tech stocks have surged an average of 35%. That’s roughly double the return of the market as a whole.
The only other sector beating the market right now? Communication services:
Since the March low, technology has returned nearly double the index; only utilities and energy have dropped. (Source: Bespoke Investment Group)
Meanwhile, utilities and energy are flashing a buy signal. Negative returns since the March are reflecting the rapid rise in the sector after the war in Iran began. Now, settling into more attractive prices.
The reality of the tech-driven AI boom is the creation of huge demands for power, including from utility plays.
Given the hefty run in tech stocks, a breather in those stocks is likely. Making conditions ripe for energy to push higher.
Further, the ongoing closure of the Strait of Hormuz leaves oil prices elevated and will translate to higher earnings and margins for domestic energy producers. Over time, that will be a big win.
To get one of the best investment ideas for a domestic energy company poised to benefit from the ongoing closure of the Strait of Hormuz, become a member of Grey Swan Pro — details here.
~ Addison
P.S. It doesn’t matter how smart you are or how much money you make in the stock market if you give all your gains to Uncle Sam. Last Friday at 2 p.m. EST/11 a.m. PST, we hosted Nick and friends from Prime Corporate Services for a tax webinar to help you be confident you’re getting all the write-offs that properly structured individual investors are entitled to.
We’ve arranged for a replay here. You’ll be surprised at how much you may be leaving on the table.
As always, if you have any questions for us, send them to Feedback@GreySwanFraternity.com.
