Written by David Fabian of FMD Capital Management. The stock market has now broken out to new all-time highs and many investors may be ill-positioned to take advantage of the latest surge. Based on sentiment indicators, fund flows, and structural positioning the overwhelming momentum has been with defensive areas of the market.
The unrelenting decline in interest rates and grasp for yield has been a tremendous beneficiary to traditional safe havens. Treasury bonds, utility stocks, REITs, low volatility indexes, and precious metals have all surged this year.
But what about the areas that have been overlooked or just plain abandoned altogether?