Equity market prices are chugging higher. This is no news to our readers. What many may not appreciate is that the character of this market rally is changing a little bit. When there is a rotation in the outperformance from sector to sector, bull markets tend to continue. This reflects healthy relative value trading were investors sell what they believe is expense (the leaders) and purchase what is thought to be cheap (laggards). In this environment, investors are not seeking risk to grab higher returns, they are seeking value to grab higher returns.
