If price action is any indication of where the market is going, then the recent performance in the financial sector can be an excellent gauge for investors to figure out where the best opportunities might be. By comparing different industry performances, investors can also gain a deeper understanding of where the economy is headed.
It is well known that when banking stocks start to outperform, the United States economy is seen as safe and in good hands moving forward, and no matter what the bearish traders out there might say, that is the case today. However, it won’t actually be that simple this time around because not all stocks will behave the same in this rotation.
