Last week’s downturn could be explained at least in part to Russia/Ukraine uncertainty, but the overall trend remains decidedly bullish. A supposed easing in the Russia/Ukraine tensions eased some of the pressure around crude oil prices, but energy stocks weren’t impacted to an unusual degree. The materials sector relative to the broader market has been in a somewhat volatile, yet sideways pattern for about 8 months.

Healthcare has been in the headlines a lot lately because of vaccine approvals, but that hasn’t really moved the needle for healthcare stocks. Rising rates across the Treasury yield curve continue to make this sector one of the market’s strongest. Oil continues its unyielding drive towards the $100 mark on the heels of strong demand for energy and rising political risks.

The financials sector has responded favorably to the recent broad move higher in interest rates, as it often has in the past. The ECB’s far overdue pivot to hawkishness certainly changes the narrative for European banks. The two-month leadership run for consumer staples looks like it might be ending. I think things could get a little quiet for bonds over the next month until we get closer to the Fed’s March meeting.