My December 2019 Seeking Alpha article, “Mean Reversion + Valuation = Opportunity” identified underperforming asset classes that were attractively valued and poised to generate above average returns in the future. Here we revisit how those assets have performed since the beginning of 2020. There is strong evidence of a sector rotation underway. Nine of 13 sectors outperformed the S&P 500 index during 2020 and 12 of 13 since November. I also share my top conviction ETF picks within the sectors considered. History suggests the trend could persist for a decade or more, but overall market risks indicate this isn’t a short-term trading vehicle.
Read the full article at Seeking Alpha.