Go where the strength is: XLF



The Fed will raise interest rates soon, and this chart displays how two rate sensitive sectors are moving YTD. There is a clear divergence between Financials (XLF) and Utilities (XLU). While the former tend to benefit from higher rates, the latter which competes with bonds and pay high yields, tend to perform poorly. So, if you want to profit from the sectors which are showing great relative price strength you know where your focus should be right now.

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