Information Technology Sector Now Highest Rated
For the first time since late 2017, Information Technology moved into the top-rated spot. This sector has historically produced especially strong results during periods after which it took over the #1 seat.
Systems Software Calculates A Win
Systems Software and Home Entertainment Software are this week's best groups. Electric Utilities and Precious Metals are this week's worst groups.
Selected Attractive Groups
Homefurnishing Retail, Apparel Retail, Systems Software
U.S. IT Companies’ Global Dominance
A look at U.S. companies’ global IT market dominance, and the key factors that drive the competitive landscape.
There’s A Lot To Like In Systems Software
In addition to impressive factor readings, we like the fundamental trends in this space.
Long Only Portfolios Down For The Month But Beat Benchmarks
Select Industries had no group deactivations, trimmed Consumer Finance and purchased Systems Software, further boosting our Tech holdings. Global Industries had no group deactivations, trimmed our Reinsurance and boosted exposure to Health Care, Industrials, and Info Tech groups.
Select Attractive Domestic Groups
Auto Parts & Equipment, Systems Software, Life & Health Insurance and Life Sciences Tools & Services are featured this month.
Select Industries Groups: Buying Systems Software And Small / Micro Biotech
New Select Industries Portfolio equity group positions being established in Systems Software and Small/Micro Cap Biotech.
Our Work With Beta Adjusted Relative Strength Pays Dividends
Over the last few years, we have been employing a beta adjusted relative strength calculation for high beta groups, along with the traditional relative strength. There are often more revealing signals given by the beta adjusted relative strength, especially in recent years.
The broad Tech sector is down significantly from all time highs, but is still not cheap by traditional measures.
Technology stocks retreat in December, as our broad tech index lost 16.0%. However for all of Q4 Tech was up 33%.
October provided welcomed relief for technology stock investors. After an average loss of 18% for tech stocks in September, the October rebound came along and more than made up for the loss in most cases.
Fundamentals continue to build for technology, but prices yet to react…..Evidence that tech fundamentals are now improving.