 Contrary to what most Americans assume, Fed independence is a myth. Mainstream investors hang on every utterance from the Fed. But they’re missing a much bigger, more important development… One that will determine whether you emerge wealthy on the other side of the chaos… or watch helplessly as your wealth is devalued. Just consider Trump’s recent moves: Removal of two Fed governors opposed to his agenda… The appointment of Stephen Miran, author of Trump’s plan to devalue the dollar and restore US manufacturing. But the biggest change to the Fed will come when the President names Jerome Powell’s replacement… The odds President Trump will name a hawkish Fed Chair – someone who keeps rates high and money tight – are zero. Powell’s replacement is going to do exactly what President Trump wants. So, if you’re disappointed because you missed gold’s big move in the last two years… relax. What’s coming for US monetary policy (and the gold price) could make the 1970s look tame – when gold went up 24X in under a decade. Find out how a recent discovery I made in a Colorado ski town could hand you a shot at life-changing gains from four deeply undervalued gold miners. Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio P.S. Gold is already up 100%+ in the last two years – and there’s nothing on the geopolitical horizon likely to slow gold’s rise anytime soon. That’s why you MUST be positioned before the next big leg up in gold. The earliest investors will reap the biggest gains. But you need to act swiftly… Go here for details on how a small stake could change your financial future.
Further Reading from MarketBeat Media Sector Rotation: 2 Smart Money Moves for 2026Author: Jeffrey Neal Johnson. Date Posted: 12/26/2025. 
Quick Look- The recent shift in interest rate policy is encouraging institutional investors to move capital into undervalued sectors with strong cash flows.
- Communication services stocks offer a compelling mix of reasonable valuations and earnings growth driven by resilient digital advertising spending.
- The healthcare sector offers a unique combination of defensive stability and explosive growth potential from pharmaceutical innovations.
The Federal Reserve has shifted gears. By lowering interest rates in mid-December 2025, the Fed signaled a new phase for markets. For much of the past year, the stock market was dominated by hardware and semiconductors, as investors poured billions into companies building the physical infrastructure for artificial intelligence (AI). But with borrowing costs falling and the economic picture cooling, capital is beginning to rotate into other areas. We are witnessing sector rotation: large institutional investors—the smart money—are reallocating capital from one part of the market to another to adapt to changing conditions. The money that fueled the hardware rally is now seeking new homes, especially in sectors that combine reasonable valuations, steady cash flow and defensive stability. The first half of 2026 could be very tough for certain stocks …
In fact, our research shows the current volatility is just a preview …
Because what's coming in 2026 could be much worse.
Specifically, a radical shift is about to hit the market … Click here now — before it's too late. Two areas emerging as winners in this environment are Communication Services and Healthcare. Examining the Communication Services Select Sector SPDR Fund (NYSEARCA: XLC) and the Health Care Select Sector SPDR Fund (NYSEARCA: XLV) highlights opportunities to build a portfolio positioned for 2026. The Mechanics of the Market ShiftInterest rates have a direct effect on business valuations. When rates are high, investors favor companies with immediate cash flow or speculative high-growth prospects that justify higher discount rates. When rates fall, the playbook shifts: lower rates make dividend-paying stocks relatively more attractive versus bonds and reduce the cost of debt for companies that rely on borrowing. That creates a Goldilocks setup for certain sectors. The market is broadening beyond the narrow leadership of a few massive tech names. Analysts at major firms are already adjusting recommendations and allocations to capture the next leg of projected growth, pivoting toward sectors that sat on the sidelines during the semiconductor frenzy. Communication Services: Growth at a DiscountOne primary beneficiary of this rotation is Communication Services. Several firms, including RBC Capital, have upgraded the sector to Overweight, a sign they expect it to outperform the broader market. The case rests largely on relative valuation: while many hardware stocks trade at historically high multiples, communication services stocks appear more reasonably priced. The Communication Services Select Sector SPDR Fund (XLC) is the main vehicle for this trade. Though still tech-heavy, XLC emphasizes service-oriented tech—software, media and search—rather than physical chips. The fund is concentrated: Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOG) together account for roughly 40% of the portfolio. That concentration has advantages—digital advertising has remained resilient and provides a steady revenue stream for these holdings. Moreover, these companies are shifting from heavy AI spending toward monetizing AI, using it to improve ad targeting and boost profit margins. Beyond the giants, XLC holds major entertainment names such as Netflix (NASDAQ: NFLX) and Disney (NYSE: DIS). As the streaming wars stabilize and companies prioritize profitability over subscriber growth, they add another layer of value. This mix of advertising dominance and media consolidation makes XLC an appealing option for growth-oriented investors. Healthcare: The Defensive Growth EngineThe Health Care Select Sector SPDR Fund (XLV) remains the defensive anchor. Medical demand is relatively inelastic—people need prescriptions, surgeries and insurance regardless of the business cycle—so healthcare tends to provide stability during uncertainty. But XLV in 2026 offers more than defense: it carries a meaningful growth component driven by pharmaceutical innovation. Eli Lilly (NYSE: LLY) has become the fund's largest holding, representing roughly 15% of the ETF, largely due to global demand for GLP-1 medications for weight loss and diabetes. That single innovation has helped decouple the fund from healthcare's slow-growth stereotype. XLV is also diversified across other segments: it holds significant positions in health insurers such as UnitedHealth Group (NYSE: UNH) and medical-science companies like Thermo Fisher Scientific (NYSE: TMO). These companies benefit from the aging population—often called the Silver Tsunami—which increases demand for medical services. While risks remain (for example, potential government policy changes on drug pricing), the sector generally exhibits lower volatility than the broader market, so XLV tends to fluctuate less than the S&P 500. The Income Factor: Dividends and YieldsIncome is an important consideration for investors rotating into these sectors. Both XLV and XLC recently went ex-dividend on Dec. 22, 2025. Ex-dividend indicates the cutoff date to receive the most recent cash payment has passed, and share prices typically adjust downward by the dividend amount once a fund goes ex-dividend. Although new investors missed the Dec. 24 payout, the yields still matter. XLV currently offers a dividend yield of roughly 1.6%, while XLC sits near 1%. In a lower-rate environment, those regular cash distributions act as a buffer against price declines and, when reinvested, compound returns over time. The Barbell Strategy: Balancing Risk and RewardThe divergence between Communication Services and Healthcare supports a barbell strategy—balancing two distinct asset types to manage risk. On one end, XLC captures upside from the digital economy, driven by Google and Meta; it's the offensive allocation designed to benefit from positive market momentum. On the other end, XLV provides a defensive floor, supported by essential healthcare demand and scientific advances; it's intended to protect capital and deliver income if markets turn rocky. Viewed together, these sectors are complementary rather than mutually exclusive. As the economic landscape shifts in 2026, combining the growth potential of service-oriented tech with the defensive reliability of healthcare offers a prudent way to navigate the market. Stepping out of the crowded hardware trade and into these diversified sectors can position investors for a more balanced and potentially profitable year.
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