Momentum stocks are leading the market higher, but this is much different leadership than what elevated the market in 2024. For example, the markets are at all-time highs, and “Risk Off” sectors (XLV, XLU, XLP) are outperforming “Risk On” sectors (XLY, XLK, XLC), and the “Cyclical” sectors (XLI, XLB, XLE) are outperforming both Risk Off and Risk On. This is shown in the chart below of the year to date performance of major asset types.
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