Market Pulse: Sector development and why momentum strategies sometimes lose momentum
On Fridays we end the week with stock talk and information about our stock strategies. We talk about stocks that qualify for our strategies and explain why. Everything is based on objective signals, clear criteria and a systematic selection. For those who want to see how our methods work in practice.
Our stock portfolios are built on trend-following principles. When stocks that have previously performed strongly (and that we own) start to weaken – while the weaker stocks we don't own start to outperform – it naturally becomes more difficult for the portfolio to beat the index. More about that in today's video, as well as a review of sectors.
Content:
- Why do stock portfolios underperform?
- Development sectors
- Trend ratings for sectors
- Correlation with the 5-year interest rate
- The real estate sector shows relative strength
- The relationship between banking and real estate
- Bank and the yield curve
- Basic materials, raw materials, copper and iron ore
- Infrequent purchases, retail and consumer confidence
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