Retail investors with less experience may be struggling to adjust because they’re familiar with the prominent technology companies. However the market often passes through multiyear cycles. Understanding changes in investor sentiment can help traders avoid areas of weakness and focus on new opportunities.
The SPDR Utilities ETF (XLU) is up 2.5 percent in the last week, while the broader S&P 500 is down almost 2 percent. Aside from real-estate investment trusts, utilities are the only major sector with a positive return over that time frame.