New America Folio type stocks have come back into favor

The Market is Looking Good

Sector Rotation

Investors have been rotating out of the Defensive Sectors

and into the more speculative Growth Sectors.

Out with the Old

The Lower Panel Relative Strength Line
compares the defensive sector index to the S&P 500 Index.
This was our clue to reduce holdings in the defensive sectors.
The shift out of Defensive Sectors began in April.

In with the New

Growth Stocks now Outperforming

This sector rotation is helping our New America Folio. The type of stocks I buy in the New America Folio are back in vogue. We have had numerous breakouts that are holding up very well. The New America Folio is fully invested once again and is now adding to the performance of all GWM Model Portfolios.

New America stocks can outperform the market in a big way when conditions are just right and conditions appear to be just right at the moment. I caught the breakouts in Nationstar Mortgage Holdings (NSM), The Medicine Company (MDCO), Qihoo 360 Technology Co. (QIHU) and more. I will outline some company profiles in upcoming blog posts.

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.