Regardless of what I say, the market clearly wants a plan from the President and Congress so that sequestration can be avoided on March 1, 18 days from now.
Our forward-looking SectorCast predicts things won’t go well—for the first time in the history of the model, the top three sectors, Consumer Cyclicals, Non-Cyclicals, and Technology, are all flight-to-safety. Last week, the market eked out a slight gain. While all style/caps were positive, only two sectors were positive on a cap-weighted basis: Consumer Cyclicals and Technology. The rest were mostly marginally negative. Read more about What the Market Wants: New Twist on Flight to Safety