This class found just one major change in the Sector Selector this week: a big drop in Energy, which pushed the rankings up for most other sectors. The big news story of the morning was a bill being passed that is expected to push a lot of money into the alternative energy world. We focused on three stocks from the Industrials sector that could benefit from that stimulus.
This class discussed the news of the day and some of the recent difficulties we've found in our portfolio. We then pressed on with a discussion about a new Sector that we previously didn't have an allocation within: Materials. Both companies we reviewed have their own unique challenges, but have attractive yields currently.
As the markets have continued to improve, the rotations within the Factor Selector have become more evident. The "risk-on" mindset has led money into Low Size and out of Dividend Yield and other defensive areas that were leading a couple months ago. Today's class was taught while markets were open, and surging, so we had to adjust some trade ideas on the fly.
The purpose of this session is to answer questions from students regarding topics taught in Brandon Van Zee's weekly classes. The goal is to help you apply the learning you receive to your own portfolio as you watch Brandon apply the same concepts in his class portfolios. Stocks discussed: RNG, DOW, DD, NFG, PG, OMC, NTAP, TXN, and INTC.
In today's class, we looked at the drop in correlation between volatility and VVIX and the compression in the VIX and how that compares to other periods where stocks rally sharply off correction lows in a single month. We discuss the attributes of a volatility storm and how likely we are in one right now.
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