Relative Weight Spotlight – Monthly Outlook – May 2019
June 06, 2019 at 10:45 AM EDT
By Direxion Market Drivers: Stabilizing macro factors and a return to supportive monetary policy have been a large driver of recent 1-month and year-to-date performances for risk assets. Performance: Year-to-date performance in U.S. equity markets have been some of the strongest on record. Under the hood, the market has shown some notable performance spreads between pairs such as growth and value stocks, cyclical and defensive sectors, and U.S. and International exposures. Flows & Positioning: Flows have mostly followed performance throughout the month. We are starting to see some notable trends in allocations to Growth and Cyclical Sector ETFs. What’s Next?: While we are still in the heart of Q1 2019 earnings season, investors should look beyond single stock results to gain confirmation on overall confidence in business segments and the overall U.S. business cycle in light of conflicting macro data.
