Growth-sensitive stocks continued to underperform as investors fretted about the darkening global growth outlook.
Economically sensitive stocks have responded as expected and snapped back mightily from weakness of just a week ago.
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Economist suggests going short on oil and buying interest rate sensitive stocks.
Hardest-hit would be interest-rate sensitive stocks of consumer-goods, financing and auto companies.
In the meantime, a glance at the charts of economically-sensitive stocks and indexes tells you all you need to know about the near-term outlook for risk and expectations of cyclical growth.
In addition to the gains among health-care stocks, consumer-staples and telecommunications stocks outpaced the broader benchmark, a reminder to market watchers that the year's gains have been driven mostly by less economically sensitive stocks.
Fidelity National is certainly sensitive to activity in the residential mortgage market, and as rates on mortgages have come back down from April through mid-May, interest rate sensitive stocks such as the home builders, mortgage lenders and REITs have all rallied.
For example, if you have been favoring more economically sensitive stocks (examples include Wyndham Worldwide ( WYN) and CB Richard Ellis ( CBG)), you may want to look at less economically sensitive stocks (examples include General Mills ( GIS) and Clorox ( CLX)).
MUMBAI--Indian shares closed higher Thursday after recovering from their early morning losses, as investors made heavy purchases in rate-sensitive bank stocks on expectations of a cut in interest rates, dealers said.
All sectors traded up, and growth-sensitive materials and industrial stocks led the way.
Biotechnology investors are sensitive about disclosure issues because stocks often make gains or losses rapidly on news events like FDA approvals or rejections.
Among the European stocks that are sensitive to the economy and were being heavily lent out were airlines like British Airways and Air France-KLM.
Bank stocks, which are sensitive to interest-rate cycles, have bee among the biggest movers today.
The day's gains were led by stocks in the economically sensitive materials, financial and technology sectors.
With those fears having subsided, investors are returning to the sectors that traditionally fare well in strong market rallies: economically sensitive financial, consumer and material stocks.
Moreover, financial stocks which have been extremely sensitive to ongoing Eurozone problems also made some gains today.
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Merrill Ross, an analyst at BGB Securities, warns that home builder stocks are temperamental and just as sensitive to prices as sales volume.
Where he really separates himself from the MSCI EAFE Index of developed world stocks are in two sectors highly sensitive to the economy: technology and industrials with weightings nearly double those of the index.
Because growth-stock buyers are sensitive to long-term interest rates, the stocks will be under pressure with strong GDP growth.
But as the year goes on, he thinks more economically sensitive sectors, such as materials (metals, chemicals, paper companies) and technology stocks, will strengthen.
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