To The Moon

March 2024 is a done deal already! It has definitively been a month of rotation in the stock market rally. As of Tue, 26 Mar 2024 closing: (1) Largest outperformer with > +9% gain: $Energy Select Sector SPDR Fund(XLE)$. (2) Funds that have beaten S&P 500 index returns for March: $Materials Select Sector SPDR Fund(XLB)$, $Utilities Select Sector SPDR Fund(XLU)$. $Communication Services Select Sector SPDR Fund(XLC)$, $Financial Select Sector SPDR Fund(XLF)$. Industrials (XLI). Just for the record, the S&P 500 index’s March 2024 gain was +3.53%. What does this mean? It means that YTD performance of (a) Financials, (b) Energy and (c) Industrials fared “better” than the benchmark index. It also indicates further broadening-out of a US market rally, that had largely been driven by Tech & Communication Services — dominated by several large Tech giants. (see below) According to Citibank’s US equity strategist - Scott Chronert: What has happened so far in 2024, are more signs of a broadening under the surface. Outperforming sectors usually are tied to economic growth. Weaker sectors, like Consumer Staples (XLP), are often bought by investors who worry about a recession. Rising stock prices show investors’ conviction & increased confidence in both (a) AI growth and (b) a smooth economic slowdown (soft landing). On a separate note: Multiple strategists and Charles Schwab, Chief investment strategist - Liz Ann Sonder — shared their opinions based on different US economic outlooks: (1) Outlook: Remains intact or improves: The rotation likely has further to run. (2) Outlook: Dampens: The "stealthy" rotation among sectors could shift once again. (3) Outlook: Deteriorates: Likely that investors will once again pivot from cyclical to defensive sectors. Despite the Fed may even begin to cut interest rate more aggressively than what was shared on the latest “dot plot” chart. My viewpoints: (mine & mine only) Production Cuts by Russia: Russia's decision to cut oil output aligns with OPEC+ production cuts, tightening global supply. (see above) Geopolitical Tensions: The ongoing conflict between Russia and Ukraine disrupts energy infrastructure and creates uncertainty in the market. Attacks on Russian energy facilities and Ukrainian infrastructure raised concerns about future oil availability. Houthi Rebel Activity: Attacks on shipping in the Red Sea by Yemen's Houthi rebels could disrupt vital oil transportation routes. A potential ceasefire in the Gaza conflict might ease these disruptions. Others possible factors: could have contributed to higher prices as well. Limited Impact of UN Ceasefire Calls: Uncertainty around the effectiveness of the UN's ceasefire call in Gaza, suggesting the conflict could continue to disrupt regional energy supplies. Anticipated Interest Rate Reduction: Rising oil prices in 2024 could also be due to anticipated interest cut as early as June 2024. Lower interest rates can increase investment in oil futures contracts, pushing prices higher. I am keeping my eyes glued to all things “Oil & LNG” related, this April. Period ! Must Read: Click on below titles to access. Give a like & help to Repost ok. Thanks. Tesla Downgraded: Is the Rally Over ? Consumer Confidence: Key to GOOG future ? $COIN Crashes: Guilty Before Trial ? Unfair ! Do you think Energy sector will continue to be the top performer in April? Do you think US economy (inflation) will continue to improve in April and beyond? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents