When the Top Sector and the Top Market-Cap Collide, This is What You Get
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on February 19th, we pegged discretionary stocks, the industrial sector, and technology stocks as the top sectors you had to own in 2015... at least for the first half of 2015. It wasn't just some off-the-cuff opinion either. We did (and continue to do) some serious earnings growth and valuation research at the sector-level, and we still see those three areas as the top spots to be in this year.
We also mentioned yesterday how the oddly-strong U.S. dollar was beginning to be a real problem for major U.S. corporations that sell goods overseas. An expensive dollar means foreign buyers of our goods have to pay a lot to get them, and we've already gotten to a point where the sky-high greenback has hurt revenue for multinational corporations.
The solution? Own smaller U.S. companies instead, as they don't rely on international sales nearly as much. Indeed, small domestic companies that sell foreign-made goods actually benefit from a wildly-strong dollar.
