Not quite two weeks ago, Goldman Sachs came out and said that the equity markets were 5% overvalued. Last week the S&P 500 was down 0.6%, which means Goldman sees another 4.4% of downside and they are getting another 1.5% today.
We have seen volatility increase dramatically over the last few weeks, but is that a sign that we need to re-adjust our expectations? The Fed came out and told us they are expecting lower growth, so are you expecting lower growth?
Healthcare seems to be where investors are headed to ride out this next leg of the storm. Over the last week, Healthcare as a group is down 0.1% and is the best performing group. When you back out your perspective to one month, three groups are in the green. Healthcare is up 2.2%, Utilities are up 2.1% and Financials are up 0.7%.
Are you looking to rotate in Healthcare? Maybe thinking of hiding in healthcare? Getting short? Both?
Let us know what sector you like for the coming weeks and months!
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