Lewis Johnson writes “Financial markets look ahead. Wait for the news and you may fall behind the biggest moves. It appears we are now very deep into one of the longest cycles of post-World War II financial history. Markets are seemingly falling “for no reason.” Is such a cyclical turn underway now? We continue to believe that more defensive portfolios are called for in this aging cycle. Today we review the lessons of prior cycles to study what may lie ahead.”
“When you feel like bragging, its probably time to sell.” – John Neff
The stocks of some of the most interest rate sensitive investments in the U.S. have fallen dramatically, on little news. Below we show the performance of such sectors in 2018. We highlight them because historic trading patterns suggest that they are among the most sensitive to higher interest rates: autos, housing, and banks.
