Serious question. How quickly are people latching on to our #GrowthAccelerating trade? Look no further than the chart below.
What you see is the absolutely ginormous sector level spread between Financials (XLF) and Utilities (XLU). Financials shot up 6% in May. Utilities sank -9%. Now that there's a monster 1,500 basis point divergence my friends. It’s a monster move. That’s what happens when you get growth right.
When you think about it, it’s actually quite simple: when you’re bullish on growth, as our Macro Team has been (and was .. well ahead of consensus), you go out and you buy financials, consumption, etc. You stay away from Gold and Treasuries like the plague.
Bottom line: Stick with growth. Stick with the winners.