Technology stocks have received a lot of investors’ focus of the past few years. However, the tide may be shifting as rotation picks up and other sectors move into the spotlight. In fact, we may just see the excitement for FANG stocks be replaced by the BEG sectors.

Banks Are Interesting

Have you heard the news? Interest rates have been headed higher. What may be negative news for companies that borrow loads of money can be a boon to those that lend it. Banks face a potential tailwind as the interest rate environment is slowly shifting to their favor while at the same time they have yet to pass that favor on to their customers. Add in the fact that many large banks are investing in technology to streamline or expand their offerings as well as owning hugely profitable trade desks and you have a recipe for some bottom line boosts over the coming years. We’ll take a look at the sector and examine where opportunity may lay.

Energy Gushes Higher

Oil broke out to recent highs this week, even as the President tweeted angst toward the move. As the economies both domestically and abroad pick up steam oil looks to power the continuing move higher. Many of the energy associated names have been unloved as prices stayed depressed for numerous year. Now, though, there may an opportunity to tap into a trend higher as the momentum seems to be in favor of higher prices for the near term.

Gold Begins to Shine

Many investors and market pundits have been concerned about inflation since the Fed started unleashing liquidity into the market a decade ago to end the Great Recession. So far, that trade has been fools gold. However, as the Fed looks ahead to continued rate hikes in an effort to get ahead on inflation many wonder if they’re already behind the curve. Gold may just be setting up on both a technical and fundamental basis to offer investors a way to play inflation should it transpire from here.


Banks, Energy, and Gold are the areas that seem to be begging for investors attention as the tech rally potentially takes a break from leading stock ever higher. If this trend continues it may be the type of major rotation that sees the indices relatively flat while sectors underneath rotate and diverge. We’ll be following this trade for sure in the coming months to see how it evolves.


Clients of Joule Financial own positions in financials, energy, and gold through both various individual company stocks as well as ETFs.