"We don't want to sell in May and we continue to prefer cyclicals (XLY, XLI, XLB, XLE) ," says...


"We don't want to sell in May and we continue to prefer cyclicals (XLY, XLI, XLB, XLE) ," says JPMorgan's Tom Lee, fully returned to his normal bullish stance. He notes client positioning is "dramatically different" from the heavily long stance of the last 3 years at this time. More, the downturn in gasoline prices could ad 50 bps to GDP in Q2, and the rally in high-yield suggests the economy is set to get stronger.

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  • kmi
    , contributor
    Comments (4564) | Send Message
     
    How do they correlate being long XLE with the position that "the downturn in gasoline prices could ad 50 bps to GDP in Q2"?

     

    Being long XLE should mean that they didn't expect gas prices to decline, no?
    3 May 2013, 08:19 AM Reply Like
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