Part 4/4:
Shenfeld attributes the distinction between the market's love for some cyclicals and its neglect of others to the perception of industry structure. Stocks in sectors like housing are seen as having a structural deficit, leading the market to project any positivity onto them. However, Shenfeld argues that affordability is the real driver of housing, and if that doesn't materialize, these stocks could face challenges.
In the final weeks of 2024, investors will need to navigate this shifting landscape, separating the trades that are likely to persist from those that may be more vulnerable to policy and economic changes. As the market continues to rotate and adjust, identifying the right opportunities and managing the evolving risks will be crucial for navigating the remainder of the year.