When the market is done falling, some analysts say they will buy the secular leadership of the inflation cyclicals. What do they mean by that? Does anyone know?
Next business cycle will be running at higher levels of inflation than previous. So, ride the momentum leaders amongst the inflation sensitive stocks. Secular denotes it may run for several years. It is a long term call. Not a week or month's trade.
%% Cycle stocks tend to be/ steel +oil stocks + such. They must be ultra, ultra long term picky investors\SPYis uptrending above 50 day movin' average+ YTD profit QQQ is even more bullish off/ 200dma. XLF still waaaaaaaaaaaaaaaaaaaaaaaay below 200dma\50dma, but no wonder\ it has ESG loving' BLK in it \about 2%. Lose your blues\ cut loose \ you're yearning/burning for some one to tell you/ life ain't passing you by\ I'm try to tell you\it will if you dont even try/ K Loggins/ 72 /million video views........
It could also mean they will buy stocks where the Vatican has no board representation. Depends on where you are reading/translating that newspaper from.
When the "spam hits the fan", good idea to be buying from the group(s) that "sold down the latest and the least"... and/or those that got trashed the most. I'm thinking those might be marijuana stocks. (Speaking of buying "stocks that got trashed"... Citibank traded at a low of $.95/sh in '09. Citibank trading as a penny stock... try wrapping your mind around that!) FWIW...
%% Sounds a bit strange this late in the steel cycle; but no wonder /some that only uses a 200dma in a wooden sense........................... 200dma = great indicator show one how weak XLK+ OILU+ XLE is; +strong SPY + QQQ is above 200dma.I pay more attention to cash metals than steel stock prices, but thats just me...................................................... NOT really against 200dma/ not that it's the only thing to use/even if its much much better than most of business comments/forecasts-opinions on news, Not a prediction+ not insured by any federal agency, thank God.
On a serious note, the inflation bugaboo is someting the creeps up on everyone. It is the biggest threat for all long term investors. Here is a pick that Jim Grant has been recommended many times: INFL – Portfolio – Horizon Kinetics Inflation Bnfcrs ETF | Morningstar A close inspection of holdings will show Materials and Energy. Sure , you may think that Bitcorn is inflation sensitive. But, it is my belief that a prudent analyst would recommend sectors that are materially representative of the economy. Financials is also found in the portfolio. But, it is the common belief that Financials are negatively impacted. Though, Narratives will be all over the place.
%% Good points. Related to that\ but other side of same coin\ ESG , s in ESG is satanic Mr Musk warned . A secular bull market also refers to long lived growth by some; I seldom use the word secular or random. The stock market is not gambling or random @ all. Some move can be tricky; we found out later an impolite secretary\ she helped cause to stock to plunge, when a fund sold a hunk because of her impoliteness. So its not a random move, its like my banker dad warned me ''accidents dont just happen son ,they are caused'' Markets tend to make a low in 1st quarter or last quarter. Bull markets uptrends do tend to last longer than bears......................................