Fundstrat analyst Mark Newton said lower crude oil prices are helping to boost strength in several sectors that have been down in the stock market.
In the new interview on Fundstrat’s YouTube channel, Newton says that recent changes in consumer and asset management are consistent with the weakness of crude oil, creating opportunities outside of technology.
“A lot of the methods are just about direction and resistance. We’re seeing positive energy from the aircraft, which is the biggest gainer of the (fuel) reduction.”
The strategist also says a number of retail stocks that have struggled as the broader market is pushed to higher levels have started to stabilize and take part in a rally.
Newton points to companies such as retail giants Nike, Target, Best Buy and Home Depot, noting that they have largely failed to keep up with the market in the past year despite major indices reaching new all-time highs.
“The bull market, these stocks haven’t done anything. So now that’s slowly starting to change.”
Newton says the recent strength has been around for the past week and a half and doesn’t appear to be driven primarily by corporate fundamentals.
The strategist adds that investors looking to diversify away from technology may want to pay attention to these areas as semiconductors and technology stocks are on the rise.
“It’s a very good sign for people looking for another place (to) put (their) Micron and Seagate (stocks)…
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