In strong, risk-on markets, leadership shows up exactly where you’d expect — Technology, Consumer Discretionary, Industrials, and Financials.
That’s where money flows when investors are confident and willing to press their bets.
And as we head into year-end, that’s precisely the message coming from the tape.
One of the cleanest ways to see this risk appetite in action is by looking at leadership within equities.
Consumer Discretionary stocks are pushing up against new all-time highs.
Even more important, they’re breaking out to new highs relative to their defensive counterparts, Consumer Staples.
That’s not defensive behavior at all.
Remember, large long-only managers can’t sit in cash or short — when they’re confident, they lean heavily into Discretionary; when cautious, they rotate to Staples
So if you’re asking where your focus should be in an environment like this, the answer is straightforward:
