Today is the final day of the 2014’s first quarter. In this week’s Mullooly Asset Management video update Tom talks about what happened this quarter.
The S&P 500 is going to finish the first quarter basically flat. We’ve seen that the strongest areas of the market have been real estate, gas utilities, and electric utilities. Why have these areas of the market led the way so far? Tom shares his thoughts on that in the video.
We may be seeing some profit-taking from stronger, higher return areas. We could also be seeing advisors and brokers performing reallocation with their clients who may have been in bonds or cash during an overall pretty successful 2013 for stocks. Rather than diving head first into higher beta stocks, they’ve decided to put money into utilities and real estate. These areas are typically less volatile, provide income, and have the possibility of appreciating in value. They’re often seen as a good way to start getting money invested in stocks.
While real estate, electric utilities, and gas utilities have been ahead of the market so far in the first quarter, they are not leaders in our long term picture yet. As we often say, “When the charts change, we will change”.
Make sure to watch this week’s video update to hear more about the first quarter of 2014.