The recent change in tone from the Fed has caused an “unwinding” of investor behavior from the last few years, says Russ Koesterich, BlackRock Chief Investment Strategist.
Within U.S. equities, there has been a recent reversal in “crowded trades” such as commercial real estate stocks and utilities that some investors have used as “bond market proxies” as they stretched for yield, he added.
As a result, investors have sold ETFs that track rate-sensitive sectors, including REITs and utilities.
Utilities Select Sector SPDR
