This Sector is About to Explode

Rate cuts, earnings, and economic growth create a potent mix

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For those new to MktContext, we use macro economic data and stock market signals to make investment decisions. This helps us beat the market compared to a buy-and-hold ETF strategy.

We were recently able to time the top and bottom of the August selloff. Check out our past archive to see market timing in action!

Current state of the economy

Lately the market has become concerned about recession. Recent economic data have shown some signs of decelerating and investors mistake this for the start of a slide. In reality, we are coming down from a period of elevated post-Covid activity and shortages.

We make the case that we are NOT headed for a recession, and in fact there could be a reacceleration in economic growth later th…