Sector rotation and what it says 08-25-2011

Deleveraging has affected every area of the stock market, but less so for utilities, consumer staples, and health care. These are defensive sectors in nature. According to the sector rotation model, they are the sectors that outperform in a bear market and early recession.

The sector rotation model is telling us that we are in a bear market and early recession. The key to listening to the sector rotation model isn’t so much of what is doing well now, but what WILL do well later. The next sector to outperform is financials.
　
http://www.financialsense.com/%20contributors/ryan-puplava/2011/08/25/sector-rotation-at-mach-speed