S&Ps have rallied over 40%. So have the QQQs.
China is up over 44%. And Gold is even joining in on the party (also not risk off).
Meanwhile, Bitcoin is up over 200% during this period.
How are bonds rallying indicative of a flight to safety or a risk off environment of any kind?
Simple. They are not.
At least they're not this cycle. And this cycle is the only one that matters.
These are incredible returns, not indicative of any defensive rotation at all.
In fact, Financials, Communications and Consumer Discretionary have been the top 3 performing sectors in the United States during this period of rising bond prices.
I think this Consumer Discretionary story still has legs. It really only got going last summer. So this is all still new.
The Consumer needs to be front and center this cycle, particularly with these rising bond prices.
We don't want to fight rising bonds. We want to embrace them.
And boy do I have a treat for you today. Jeff Macke was recently a guest on the Off The Charts podcast with Sean McLaughlin and Steve Strazza.
In the episode, Jeff breaks down his approach to Consumer investing, how he spots trends before they blow up, and why the "story" behind a stock matters just as much as the fundamentals. This is retail investing without the fluff.
If you want to hear about the red flags most investors miss, how Jeff spots trends before the crowd, and why management integrity can make or break a stock, you need to watch this.
📺 Catch the full conversation here
Enjoy!
- JC
