Sector Rotation 01 13 2012

Gave back just a little on Friday

The Euro downgrade weighed on the market on Friday. Stocks reacted much less than they would have a couple months ago. That is a good sign.

Equity Sector Rotation

The defensive sectors, last year's best performing sectors, are lagging in the new year. Utilities and consumer staples are now definitely out of favor.

Utilities & Consumer Staples are declining.

Flexible Income Sectors

US Select Dividend, US Credit Bonds and Convertible Bonds are the best performing Income Sectors at the moment. The 20 Year US Treasury is once again rising due to the current focus on the Euro debt crisis.

Green is Good - Yellow Nuetral - Red is Bad

I have re-positioned GWM Model Portfolios out of underperforming sectors and into the best performing sectors. The market feels like it wants to go higher.

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