With record inflows into stock mutual funds and seemingly the outflows coming from the bond market, the great rotation seems well underway.

If that is the case, and you are not in stocks, but want to get into stocks, should you be buying an index, an ETF sector, or the individual stocks?

Looking at Hedge Fund data, say Pershing Square and Bill Ackman, he’s +4% for the year, picking individual stocks is not as easy at it seems.

More success and retention of sanity would probably result from buying sector ETF’s, and concentrating on the under-performers if you are just entering the market.

You could also go global. I bought Chile [ECH] last week. It still has good potential to run higher and may be in a bottoming process. The point is, buying SPY, QQQ or DIA at new highs could turn into a bit of a tough trade if things turn nasty on news. Buying low means that most of the bad stuff already is in the price…expectations are zero. Any positive surprises can work in your favour.

If the economy is entering into some growth [I don’t really think that it is] then commodities, currently despised are an area that will hold good potential.

The point is this: if the great rotation is on, and it certainly looks to be the case, Dalio called it about a year+ ago, then stocks continue higher irrespective of the economy.