FROM THE INVESTMENT DESK
We can debate whether the public investment markets have valuations all wrong right now if you'd like, but that is not the purpose of today's entry. If you follow my writing, my position on this subject is well known. With that said, it is not all sunshine and lollipops. The chart below tells a very compelling story to investors seeking "opportunity". Remember though, just because something is inexpensive, does not mean it will someday be valuable.
The bottom 3 performing sectors on a year to date basis are:
1- Energy -- a very contrarian investment. The search for value here requires expert level knowledge and bravery. Not for the faint of heart, but money to be made.
2- Financials -- could be very interesting. Banks are going to have to find new and innovative ways to stimulate the balance sheet, and income statement. Don't count them out......ever.
3- Industrials -- economically sensitive to a certain extent, but plenty of quality to choose from. A fall from grace for sure, and room to improve.
The chart below is the tale of the tape. Have a look, draw conclusions, and let's have a discussion about it.