For weeks we’ve been seeing the underpinnings of rotation. Whether it has been radio or this blog we’ve mentioned just how money has been slowly rotating away from what has been working into areas that will benefit from interest rates and inflation. It really didn’t matter who won the election however with a Trump win and a republican house and senate the action is much more pronounced and immediate. Today we’re seeing the second day of what is historic rotation. The NASDAQ is down almost 1% as I write, while the banking sector is up over 3%. Our very own JP Morgan is up over 4% and has added over 10% in the last 48 hours. Silver and other commodities are absolutely on fire while the market, as noted by the general S&P 500 is flat to red.
It has not been easy over the last few weeks to remain positioned as we have been, waiting out what we’ve been seeing as an obvious rotation, however our patience is paying off this week and I suspect it is only the beginning of this move.
Here’s to watching all the money rotate into areas we’re already positioned.