Leaders-Laggards

The market seems to have digested the initial reaction to the Russian invasion of Ukraine and we could start to see things settle down here. We could be seeing the start of a turnaround in utilities stocks here. Will nothing stop the surge in the dollar?

This is a strong breakout for REITs after months of mostly drifting in a sideways pattern. Dividend payers have been one of the best smart beta plays over the past month and have been tied closely to the moves made in staples, utilities and real estate. TIPS tend to outperform the broader fixed income market in bond bears, but long-term inflation expectations are rising again.

Crude oil prices resumed their climb last week and so did energy stocks. Materials stocks are following energy stocks much higher as the commodities rally carries on. The rotation into defensive stocks continues to pick up steam, although last week’s move was muted compared to gains over the prior two weeks.