Sector Rotation

Interesting comments today from djpreston on the fool regarding sector rotation.   Previously PYAD has stated that banks are usually first into a recession.  The following comment expands on this (note that djpreston is a fund manager aparently):

What we’re seeing is the flight to quality - the rush for the defensives and the mega cap stocks. Thats the first stage, next we see some disappointing news on the defensives. I dont know what that might be, Im not buying utilities at these prices - there’s a high likelihood IMO of government changing pricing regimes in the not too distant future so that will whallop some. Thats when we see the big falls as the mega caps and defensives get sold off in favour of cash.

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