With This Current Sector Rotation, Your Best Bet Is to Follow the Crowd

All we've heard for the last month or so is how the market is undergoing a tremendous rotation between sectors. The migration of money from perceived overvalued groups into better values has changed the performance landscape, but is it worth following the crowd? In most cases, I preach that being part of the crowd is one of the more dangerous moves. This is because crowded trades tend to be so at their tops, not bottoms. But in a small number of cases, a few of the leading sectors are showing signs that they've yet to become crowded trades. The following table displays the top-performing, widely traded ETFs since the beginning of July. The sector rotation has prices in healthcare and related groups outperforming the market. These, of course, had been some of the market's underperforming sectors for some time. Topping the list is the SPDR S&P Pharmaceutical ETF, which has left the market in the dust over the last month or so, returning more than 12%. Normally, I would back away from a potentially overbought crowded move like that, but let me explain why it's different in this case... Tags: ETFs Article To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2018 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post With This Current Sector Rotation, Your Best Bet Is to Follow the Crowd appeared first on Money Morning - We Make Investing Profitable .