Three Stock Sectors Are Now Emerging As Trump + Rate Cut Trades

The RWR REIT sector ETF went up yesterday, and this is the third time I’ve mentioned it in the past two weeks. It’s emerged as market leader.

And yesterday, big banks and smaller regional banks went up too.

The two major ETF’s that track them are XLF and IAT.

You can consider these three Trump trade sectors for the rest of the year, being fueled by the Federal Reserve’s likely interest rate cuts before the November election.

The action in these ETF’s are noteworthy, because yesterday the Nasdaq fell over 500 points to have its worst day in two years, and did this after a big buying thrust all across the market the day before.

People are buying all sorts of sectors that they think will either benefit from a Trump win or an interest rate cut now, but to do it they have to sell something.

Well, when everyone owns the same few stocks those stocks can be volatile at a time like this, as they get hit by profit taking by those that want to move their money into something else.

Hence, NVDA dumped over 6% yesterday and the chip sector got hit hard.

The things that have been the red hot must own things of the past year and a half all got hit.

Is this the end of the stock market bull market?

Probably not, but again we are going through a rotation and for money to move sell buttons have to be hit first so that buy button can be pressed.

I’d guess that RWR, XLF, and IAT will all outperform the chip sector SMH ETF for the rest of this year.

IAT was up 1.52% while SMH fell 7.12% Tuesday.

You should also consider gold a Trump trade too, because he has talked about wanting a weaker dollar and gold has been going up too.

I use TC2000 to analyze the stock market sectors.

It has the gold stock sector up 13.5% so far in July.

It has real estate up 11% during that same period.

The worst performing sector in the entire stock market this month are the chip stocks.

No “AI” was used to write this email or edit it.