June 14, 2021, 10:26 am EDT
Grinding on Top
All indexes stay near the top of the record high for the past 1-2 months. But, traders and investors may feel like a grinding process instead of excitements. The reason is that only a small group of industries are leading the wave. Most importantly, they are not traditional offensive leaders. Energy, REIT, and healthcare replace previous leaders in technology and communication services.
It reminds market participants to be extra cautious on stock selections and portfolio composition.
G7 meeting concluded to be united toward China for the root cause of COVID-19, Hong Kong restriction, Xinjiang human rights, South China sea control, Taiwan military threat, etc. It could be the signal of future confrontation. The other threat is the coming global inflation which may become a big impact on economic development worldwide. This is why commodities in the energy, basic material, food, and precious metals keep getting higher.