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Strategas: Buy industrials, banks over energy

Published 09/25/2017, 10:36 AM
Updated 09/25/2017, 10:36 AM
© Reuters.  Strategas: Buy industrials, banks over energy
  • While energy staged a bit of a comeback last week, and it was the best-performing sector, Strategas's Chris Verrone and his team think investors shouldn't get too excited.
  • The reacceleration in the Industrials sector is "more durable," as new highs have expanded and relative performance has improved, while the charts from the road and rail industries show they can continue to propel this growth. Furthermore...
  • "Unlike Energy, the bid for laggards has not provided much relief for the bond proxies. Utilities have reversed, REIT's are at new relative lows, and many Consumer Staples names remain under pressure. Conversely, the Bank stocks have firmed with both Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) hitting new highs last week and closely tracking the action from the 2-year yield. We prefer Banks over the yield proxies."
  • Related tickers: XLE, XES, XOP, XLI, XLF
  • Now read: One Of Citigroup's Preferreds Is Defying Gravity Again

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