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Recession Stocks Fall Hard – Economically Sensitive Stocks Shine

It was an interesting day today in the market.

The recession stocks (like Kellogs above) fell hard. The economically sensitive stocks, like Potash (up 13% today) were very strong.

It seems that there are some believers out there that earnings matter, and that the liquidity in the system will first positively impact the cyclical stocks.

This could be the beginning of a long process of sector rotation away from the low growth recession stocks back to the high growth economically sensitive stocks. We will be watching this closely.

Mark