Market Shifts Toward Cyclicals as Recovery Takes Hold
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US equities have steadied after a record rally in February led by mega-cap tech stocks like the Magnificent Seven.
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The market may be shifting toward more economically sensitive and cyclical areas that could benefit from a reflationary environment.
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Consumer cyclicals are attractive due to real income growth supporting consumers.
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Selected industrials like business services may perform well amid green shoots in manufacturing.
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Small and mid caps are cheaper, more sensitive to economic swings, and could rally further but need earnings confirmation.