Yo Pit Crazies,
As much as Alphabet Inc. (Ticker: GOOGL) and Microsoft Corp. (Ticker: MSFT) have led stocks higher over the last 10 years, they are finally catching the malaise of large size and slower growth.
Meta Inc.(Ticker: FB) is the latest tech wreck.
That does not mean they cannot grow, it is just slower and the huge multiples they enjoyed are going away.
This is what talking heads call “sector rotation.” A once-hot area cools and other undervalued or underperforming areas start to look better
After all, a $50 million market cap stock can double but it is very hard for a trillion dollar market cap stock to do the same thing.
Below is a chart of a cyclical name that could enjoy a renaissance of sorts this year.
Let’s see what it is.
Solar Stocks Still Have Huge Growth Potential
Stocks like Enphase Energy Co. (Ticker: ENPH) are in the Guggenheim Solar ETF (Ticker: TAN).
ENPH was up 8% on Wednesday and it is a bit of a monster when it comes to trading. TAN is a lower risk alternative since it holds most of the big solar stocks and is not too concentrated in any of them.
The chart above was TAN and it is a cyclical product.
It is coming back into focus for Capitol Gains because money is moving out of Big Tech and looking for little tech.
That is an opportunity.
Questions? Drop a comment below!
To Your Trading Success,
AG