I have been a huge component of growth slowing, and the cyclical/defensive proxy of XLI/XLU is a clear indicator that the growth outlook is mixed at best.
Not only that, you might be a beta (probably the bad kind). When you see both growth and inflation slowing on a rate of change basis on the back drop of higher volatility, you must always look to long low beta, short high beta.
[b]From today's Parallax Weekly:[/b]
Cyclical v Defensive (XLI/XLU) is hovering around a 11-month low. This is another indicator of slowing growth as cyclical revenue and earnings are heavily reliant on economic activity. This is also a high v low beta trade. The 3-year monthly beta 1.05 v .05. Since October 1, XLI is down 11.58 percent opposed to a 3.59 percent gain for XLU over the same period.
On a relative basis, XLU has outperformed XLI by 15.17 percent. And those long Bitcoin are missing that.