The market’s trading like it’s the end of the cycle, and here’s how an analyst says to position for it

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“I am concerned about the durability of this market and economic expansion.” The market's trading like it's the end of the cycle, according to this analyst.

Tesla is TSLA, -14.32% parabolic. The yield on the benchmark 10-year Treasury note TMUBMUSD10Y, +2.32%, even before the coronavirus outbreak, couldn’t top 2%, and the yield curve even when it isn’t inverted has been very flat.

Over two years, zero-coupon Treasurys EDV, -0.93% have produced nearly double the return of the S&P 500 SPY, +0.60%. Larson says over two years, “boring” stocks like utilities, real-estate investment trusts and consumer staples have done well, and in the call of the day he expects those sectors to continue to perform, even if they are overbought in the short term. Larson says these sectors offer high dividend yields and protection from economic weakness—even if talking about utilities may put you to sleep.

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