Sector Power Rankings: Here’s Where the Big Money Is Flowing Big Money took a break over the holidays, as expected. Stocks still moved around, but trying to read the tea leaves on virtually no volume is a waste of time. It’s not “real” action. It’s the mice playing around while the cat is away. A much better use of our time – and my Quantum Edge data – is analyzing where the Big Money went in 2024. This is the money that moves stocks, so it’s important to see where the money flowed as we strategize for 2025. Let’s put our Quantum Edge system to work and see where the biggest investors in the world were putting their money. Source: MAPsignals.com Financials and Technology were clearly the 2024 hot spots. Financials led the way with 16.1% of all Big Money buys, producing 3,116 unusual buy signals for the year. Technology was close behind at 15.7% and 3,031 signals. Traditional financial stocks typically do not rate high in my system because they tend to carry debt, which dings their fundamental ratings and overall Quantum Scores. You won’t find me jumping into financials with both feet, but companies that are more tech-driven can rank high in my system. For example, I recommend Tradeweb Markets (TW) in my Quantum Edge Pro service. It is an electronic trading platform, and the company developed technologies to enhance the trading process. It gained 47% in 2024, boosting our overall return over 70%. Shares are above our buy limit, and the stock continues to rate well across the board. Source: Quantum Edge Pro That stellar Fundamental Score of 79.2 is almost impossible in a more traditional financial company like a bank. Now, let’s look at the data from the other side – sell signals. Health Care stocks were the most sold as a group, accounting for 19.3% of Big Money sells with 2,184 signals. And guess what’s next? Technology at 15.9% and 1,794 signals. Source: MAPsignals.com It may seem odd that Technology would be the second-most bought and second-most sold sector in 2024, but keep in mind a couple of things. First, tech can be volatile, as we all know. And second, it is one of the biggest sectors with 57,069 companies in my database. Health Care is slightly larger with 58,106 companies, and it was the third most bought sector while also being the most sold sector. Let’s bring it all together by looking at the final sector Power Rankings for 2024. Not surprisingly, Financials and Technology again top the list as the strongest sectors of the year. Tech comes in with better fundamentals while Financials have the edge in the technical. Source: MAPsignals.com The biggest takeaway from those rankings is how growth sectors continue to dominate. These are the sectors that power bull markets higher, which reinforces my outlook for a strong 2025 and the moneymaking opportunities that will come with it. The tailwinds are clear. Global interest rates are falling, and the Federal Reserve anticipates at least two more reductions in 2025. Small and midsized stocks (which we focus on in Quantum Edge Pro) tend to be among the biggest winners when rates are falling, but high-growth bigger companies also outperform. Also helping, rates are coming down while economic data remains strong. We have a pro-business, anti-tax, anti-regulation administration coming into office. And we remain in a good time of year for stocks, with strength typically continuing into the spring. Plus, institutions tend to put fresh capital to work at the beginning of the year. This is where the beauty of the Quantum Edge stock-picking system comes into play – especially because it tracks Big Money so effectively. We can identify the best stocks fundamentally and technically, and we can see which ones Big Money is buying and which ones Big Money is dumping. That’s the best moneymaking formula for 2025. Find the best businesses (strong fundamentals) whose shares are trading well (technical) and that the institutions are buying. And if the tailwinds give the kind of boost the data tells us to expect, the profits will be even sweeter. Here’s to a happy, healthy, and profitable 2025! Talk soon, Jason Bodner Editor, Jason Bodner’s Power Trends |
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