What I Like Most About This Rally

Back in the second quarter our theme was “consolidation and continuation”, meaning we were looking for a market correction that would lead into a continuation of the bull market (See April 20, 2012 “Looking Ahead to Second Quarter”).   Well, the correction we were looking for clearly unfolded, taking the S&P 500 down about 10% between…

Discretionary Stocks Continue to Impress

Since the stock market made its recent high on April 2nd (in the S&P 500), there has been a noticeable shift in sector performance. As they often do during periods of market indigestion, defensive sectors such as Health Care, Consumer Staples, and Utilities have been outperforming. Meanwhile, the cyclical sectors of the market that had…

Following the Beta Trail

In our Inside the Investment Committee presentation, I mentioned the great start to the year for high beta, domestic cyclical stocks (“high beta” refers to the volatility of the stock compared to the S&P 500). Small cap, semiconductors, miners, and energy stocks have more volatility when compared to the S&P 500 and therefore a higher…