Follow the leader

Reading the daily noise that is mainstream market media one would be led to believe all the fear that is pushed down our throats on a daily basis. With information so readily available the media loves to jump on a good headline especially when it's fear driven. With 24 hour news channels and traders and social media platforms such as twitter news good or bad is instantly broadcast and magnified to a global audience. Whether it be Greek exits, Fiscal Cliffs, Oil crashing , Iron Ore etc etc etc etc 

Forget the daily noise and focus on the best companies in the best performing sectors.

Just look at the graph below comparing Aussie biotech leader $CSL vs the $XJO index over the past 3 years.

In the recent market sell off $CSL has been making new record highs when the overall market has been weak. I focus on the companies in the strongest performing sectors. Money tends to follow these and flow down starting from the largest and then into the smaller caps - In this case the smaller capped Aussie biotechs of which there are only around 150 companies not the 1000 odd resource companies all digging holes and now not even doing that! I personally have not owned any resource companies since 2011.

Anyway just a quick post to say I have seen some relative strength coming back into some of the small cap biotechs.

Let's see what the next few months brings