The past year's Anti-Globalization rally was led by the junkiest cyclical stocks. These are stocks that are highly leveraged to economic reflation, which unfortunately happens to be a late cycle fantasy. You know, like last time...
The high beta ETF relative to S&P, one year performance:
I think we all see where I'm going with this...
Let's take a look at the top holdings:
These are the stocks leading the past year's rally:
The top holding is Chesapeake Energy the oil and gas exploration company whose CEO died in a 'mysterious' car crash one year ago, a day after being indicted for bid rigging:
Natural gas pipelines
Also in the top 10
Here are the top financials
Schwab. Of course...
A bit further down...
Last, but not least Northern Trust.
Remember 2008, and the fake reflation then too? I do...