Musical Chairs

When the music stops, who has a chair? Clearly it is not many of the mega-cap tech companies that led market performance for so many years. Too many have recently reported disappointing earnings for the most recent quarter. Market leadership has shifted. It is now financial, industrial, and healthcare firms. There are underlying reasons for each one of these category’s good performance today.

Financial companies are benefiting from higher interest rates. Industrials can raise prices and are climbing on the trend to re-shore production and a preference to buy American. Healthcare is going through a renaissance driven by advances in therapies and innovation in delivery services.

As a result, the stock market is doing well. It is bifurcated with some stocks moving higher and others failing. Expect more of this; not all bad, but certainly not all good. Good stock picking is becoming more and more important. The Bull announced in past blogs that Riverplace Capital was shifting emphasis in portfolios. It is increasing clear why. Stay steady my friends.