While investors were watching to see if the market could hold gains on Friday, the real action beneath the surface was in the S&P Telecom Index; it’s been the worst performing sector of 2017.  After the end of the closing bell, it was the best performing sector of the session, and the 2017 standout tech sector slipped into negative territory.

It’s unlikely a lot of money will pour out of information technology into telecom. There are signs big money is looking for value, particularly after this unforgiving earnings season, where virtually every company that reported saw its shares get hit.  Now, telecom is up 1% for the year, while the overall S&P 500 is hovering above an 8% gain.

There is rotation; for investors, the question is whether to endure period pullbacks - even corrections rather than looking to beat the market on a day-to-day (or month-to-month) basis, which is pure folly.

An August to Forget…A September to Remember

Although the market eked out gains on Friday, August has been tough. Historically, September is the worst month for investors. I don’t believe in investing based on the calendar (selling in May has been a losing strategy in recent years), but when the market has a wobbly history, stock market lore can have influence. This week will see thin volume as many investors take the week off, but there are important economic reports; the jobs report on Friday will have a serious impact into next month.