Despite the rotation, we would not turn our backs on the reopening trade. Between the approval of vaccine boosters, the development of highly effective antivirals, and the wide availability of rapid tests, we have more tools at our disposal to combat this pandemic than ever before. At the end of the day, our approach to the market right now is to continue to monitor the rotation, maintain diversification and our portfolio “barbell” of reopening plays and secular winners, and search for bargains in special situation stocks.
Under the hood this week, the S&P 500 was led by consumer discretionary stocks followed by information technology. Energy was the largest drag on the index this week followed by financials and materials.