Hurd on the Street, December 2015
Déjà vu all over again.
The stock market in the month of November started with the S&P 500 falling sharply from the major resistance levels around the vicinity of its August highs. This initial decline was to be expected after the extremely powerful move up from the lows established in August. Just when the market began testing these recent lows, it rallied and recouped most of the losses later in the month. As has been the case for most of 2015, however, just when the market appears to be poised to breakout and make a meaningful high, it reverses and trades rapidly down to the lower end of the range. While we cannot predict, we would not be surprised to see this type of action again heading into December and January. As frustrating as this action has been, we have had a number of our holdings make impressive new highs recently, which is encouraging. This also points to the fact that it has become a stock pickers market, which has generally been a good environment for our investment style.
In order to make money in the market conditions that have existed this year it is more important than ever to be in the strongest sectors. To this end our strategy has been to reduce our exposure to stocks in all segments of the healthcare industry and to add capital to sectors related to information technology, in both hardware and software. We also look to add to our weightings in the regional bank sector.
Wishing you a very merry Christmas and a prosperous new year.
Disclaimer: Rocket Capital Management, LLC is a registered investment adviser. The comments presented do not constitute personal advice and are not intended to be a solicitation for the purchase of any individual securities or investment strategies. All investing involves risk. Please consult with a registered adviser before making any investment decisions.