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Technology & Financials
Technology shares were weaker again today, with Technology Select Sector SPDR ETF (XLK) falling by 50 bps, while the Financials Select SPDR ETF (XLF) rose by 80 bps. The rotation in the market continues with the theme, rotate out of Tech, reaching into different parts of the market. With Biotech being the recipient a few weeks back, and now it appears to be the Financials turn.
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Dollar
With the Dollar continuing to weaken one has to wonder at what point money will begin to flow into the material group. The Materials Select Sector SPDR (XLB) has had a decent year, Â down slightly versus the S&P 500, but significantly underperformed the S&P 500.
The Dollar index closed lower again today, and now sits at 92.94, and is down nearly 10 percent on the year. A weakening Dollar has a ripple effect globally, making US based multinational and the emerging markets (EEM) more attractive. Meanwhile, a weak Dollar makes the Yen strong and hurts Japanese equities and European multinational less competitivity. Unlock Deeper Insights with Exclusive Member-Only Video Content on The Market Chronicles YouTube Channel – Just $34.99/Month
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Charts used with the permission of Bloomberg Finance L.P. This report contains independent commentary to be used for informational and educational purposes only. Michael Kramer is a member and investment adviser representative with Mott Capital Management. Mr. Kramer is not affiliated with this company and does not serve on the board of any related company that issued this stock. All opinions and analyses presented by Michael Kramer in this analysis or market report are solely Michael Kramer’s views. Readers should not treat any opinion, viewpoint, or prediction expressed by Michael Kramer as a specific solicitation or recommendation to buy or sell a particular security or follow a particular strategy. Michael Kramer’s analyses are based upon information and independent research that he considers reliable, but neither Michael Kramer nor Mott Capital Management guarantees its completeness or accuracy, and it should not be relied upon as such. Michael Kramer is not under any obligation to update or correct any information presented in his analyses. Mr. Kramer’s statements, guidance, and opinions are subject to change without notice. Past performance is not indicative of future results. Neither Michael Kramer nor Mott Capital Management guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment commentary presented in this analysis. Strategies or investments discussed may fluctuate in price or value. Investments or strategies mentioned in this analysis may not be suitable for you. This material does not consider your particular investment objectives, financial situation, or needs and is not intended as a recommendation appropriate for you. You must make an independent decision regarding investments or strategies in this analysis. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Before acting on information in this analysis, you should consider whether it is suitable for your circumstances and strongly consider seeking advice from your own financial or investment adviser to determine the suitability of any investment.
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Mott Capital's Market Chronicles January 10, 2025 12:02 PM