Julius starts with a look at what happened last week in terms of rotation for asset classes and sectors. After that he puts these rotations in longer term perspective using weekly charts and Relative Rotation Graphs while overlaying the 12-month rolling BETA for sectors and comparing those values with the first half of 2020.
One of the conclusions is that Technology has lost its role as a defensive sector and is now back at the top of the list with the second highest 12-month BETA. When focusing on the rotation of the tails for Technology and Consumer Discretionary in combination with their BETA readings a short term warning is issued for the market in general.
Wrapping up the show, Julius shows the strong rotation of the USD against other major currencies that is currently underway and which will impact foreign investments for US based investors.
The spreadsheet that Julius uses to calculate rolling BETA has been updated. If you requested a copy of that spreadsheet in the past you will get an updated copy later this week. If you are not on the list but would like to receive a copy as well, just drop a request to [email protected]