With each passing week, a structural shift in the stock market becomes more likely. The exotic, high-beta products that defined the previous year’s rally are being unceremoniously liquidated. In their place, a “bunker mentality” has taken hold, forcing a return to the industrial bedrock of the global economy.
There are good reasons for this, and I’ll explore those below. However, I think there’s still plenty of room for skepticism about any part of the stock market, as we see how the twin challenges of tariff impact and oil prices play out. But as I’ve said here recently, I’m always on the look out for pockets of opportunity, even in the strangest of stock market conditions. Which is what we have right now.
