VOT trade ideas
Growth Portfolios did not perform great today.The Investors Business Daily 50 ETF (FFTY) was down 0.5% while the major indexes were setting new records. The rotation was not friendly to growth stocks.
Today's rotation was a bit strange because it was not a particular switch in Industry sectors (like Tech to Utilities) but rather a rotation from Mid Cap to Small, Large and Mega cap. Actually VOT (mid-cap) still had a small gain, but trended down the entire day.
Why?
There are two factors in my opinion.
1) The post-pandemic economy. Small Caps continue to get energy as they will benefit from a recovered economic situation in the US and have a high potential to be the next growth stock.
2) The weakening US Dollar. Large Caps (and their big sibling mega caps) would be the most likely to benefit from a weakened dollar as exports will become cheaper in foreign markets, increasing sales while and multinational subsidiaries revenues are more valuable as the repatriate to a cheaper US dollar.
I could be misinterpreting but just trying to make sense of a day when the entire market goes up but a growth portfolio goes down. Thankfully, I still have my XLE (the new growth ETF lol) in play.