This Circus Is Preventing Many Investors From Winning

Editor's note: With daily headlines full of controversy, you might miss what the market is really doing... But thanks to the team at our corporate affiliate Chaikin Analytics, we have a clear way to see which sectors have quietly outperformed. In this issue – adapted from the free Chaikin PowerFeed daily e-letter – editorial director Vic Lederman explains why tuning out the media "circus" can help you spot these easy winners...

We're now firmly in the second half of the year...

The market reached new highs last week. But if you read the news, it sure doesn't feel like it.

Now, I grew up in the "if it bleeds, it leads" era. But there's no denying that over the decades, the tone of the mainstream news has gotten worse.

Heck, just about everything I read feels like an episode of The Jerry Springer Show. We have tariffs, wars, disasters, and public embarrassment.

I'm not saying to bury your head in the sand. But there's no denying the media's focus on negativity and foolishness...

You might have heard that Linda Yaccarino stepped down as CEO of social platform X in July. The announcement came as the company's AI chatbot Grok made headlines.

An algorithm issue led to Grok making outrageous and offensive statements... the kind I wouldn't repeat in this setting.

The funny thing is, by all accounts, Yaccarino did a good job. She came into a company that had seen its advertising partners abandon it.

And for the first time in years, X is projecting advertising revenue growth. (Well, at least it was before this PR disaster.) In that sense, Yaccarino did her job.

But if you just follow the headlines, all you'll see is the circus...

The media has adopted the "Jerry Springer model." Fights, outrageous behavior, and wild stories dominate the headlines... which is great for clicks and eyeballs.

But it's a real problem for investors. It tricks folks into thinking that the world is a complete mess.

Some investors even throw up their hands in the face of all the negativity and nonsense. They sit on the sidelines waiting for a better environment. And it's hard to blame them when we're faced with a constant barrage of negativity and foolishness in the media.

But the reality is that this market – yes, this market – is producing big results for investors. All you need to do is pull back the curtain to see it...

Corners of the Market Are Outperforming

As I said earlier, the broad market made new all-time highs again just last week...

Despite the dip in recent days, the S&P 500 Index has gained nearly 9% in 2025. And the tech-heavy Nasdaq 100 Index is up roughly 11%.

That's great. But even better opportunities are out there...

Looking at market sectors, the industrial sector is the top performer so far this year. As measured by the Industrial Select Sector SPDR Fund (XLI), it's up roughly 15% so far in 2025.

The Power Gauge has been there alongside it, too. At Chaikin Analytics, we use the Power Gauge to gather investment fundamentals and technicals into a simple rating ranging from "very bullish" to "very bearish."

When it comes to XLI, the fund hasn't had a "bearish" or worse rating since late 2021.

We can also dig deeper into the market...

The Power Gauge follows 21 market subsectors. And some of the exchange-traded funds that measure those subsectors are soaring this year.

The SPDR S&P Metals and Mining Fund (XME) is the top performer. It has climbed an incredible 36% year to date. It has also been in "bullish" territory in the Power Gauge since late May.

These leaders were clear in the Power Gauge. And you wouldn't have had to do any fancy footwork to act on them.

But if you only follow the media's negativity... all you'll see is the circus.

Now, I obviously don't have a fix for the world's problems. And the media is busy profiting from trumpeting them.

But when it comes to investing, the circus is a distraction. There were easy wins in the first half of the year... And there will be more easy wins in the second half of this year, too.

Don't let the media circus prevent you from seeing them.

Good investing,

Vic Lederman

Editor's note: Markets are sitting near record highs... but fear of a tech-fueled, dot-com-style crash is spreading fast. That's why Marc Chaikin – whose Power Gauge has guided subscribers through every major market turn of the past five years – is stepping in...

On Tuesday, August 26 at 10 a.m. Eastern time, Marc will hold his first-ever "Ask Me Anything" event online. He'll address the investors' biggest worries right now, share his urgent 2025 Market Forecast, explain what tariffs really mean for your money, and reveal where you should consider investing right now.