In this article, we will talk about all the hot sectors so far for February; things have taken radical turns throughout the month. Miner who produces eventual gold bullion is tops for this month! The sectors that were leading were different. Now that we’ve gone more defensive, let’s highlight some of the sectors as we are looking to go through some, quite possibly into a steep economic downturn. Of course, you typically look for defensive stocks, so you would think the commodity markets would be excellent to hide in.
Out of the ones I’m seeing, there’s only one with high performance: commodity gold. That is returning a 43% return this month. I will dig deeper for my Quant Analytics members (Quant Analytics Alerts 3 Month Subscription – quantlabsnet) to see where things are specifically for gold prices, gold miners, etc.
Other sectors that would do well would be consumer staples. Of course, there are differences with general commodity markets with different stock prices, so you know where to hide if things get terrible. But as I said, the ones looking to give max returns are commodity markets.
If you’re looking at one, one area I like is miners who produce eventual Gold Bullion. Other desperate folks might start buying gold coins from various mints as commodity gold sectors seem to return 43%.
Another relatively high sector that is shocking is crypto returning 19%. The other doing reasonably well is US market-listed financial currency at 13.81%. So different areas you would think people would be looking for are discount retailers, and as I said, you would be looking at the consumer staples, but generally, the stock markets have cooled off so far.
The rally could continue tomorrow (Weds) or later. So it’s tough to say long-term where markets are shaky, but it’s good to know that you can move into gold bullion miners.
There are other precious metals giving returns as well. But, unfortunately, we need to see silver, platinum, etc., provide any high-performing returns in the CFD space. For example, I did a video for my Quant Analytics members (Quant Analytics Alerts 3 Month Subscription – quantlabsnet) on silver and palladium, which is not great.
To find your positive returning recession hits, you need to focus on quite surprising areas. European market indices are outperforming the USA.
Some overseas European indices would be Germany, Britain, and EU 30. France is doing surprisingly quite well, along with the Netherlands. I wonder if these have recently outperformed the major US stock market indices.
I could look at the midcap stock quotes coming soon, which need to be analyzed to see if any US-listed stocks will expose you to those markets. However, remember there are many areas to scan in real-time, a key takeaway for overall trading success. Reviewing these will help you determine some top-performing defensive stock categories.
There are defensive stock categories, so others must give you better performance. I’m looking at US-listed financials (return 7.45%) and overseas markets in Japan (return 6.64).
Another one that’s quite surprising for the commodity markets is agriculture which produces 9.38%. These are classic defensive stock categories when an economic downturn could occur. I hope this analysis helps you out.
If things get hairy as a defensive stock, consider how to create your bank. I have a video where you can sign up for banking – QUANTLABS.NET to get in.
That will be the best thing I can give you if we go defensive right now, at least from today’s market report, especially for the stock market.