The stock market will continue to buck the constant flow of troubling headlines and also gloomy metrics in a stark disconnect together with the economy that is been hotly argued on Wall Street.

Although it might feel rather toppy and precarious, Thomas Hayes, chairman and founder of Great Hill Capital, a whole new period within the bull market may be in route.

“It is a Dickensonian,’ Tale of 2 Markets’ if you hunt within the surface,” he had written in a blog site post. “While it may be true that the common indices can be thanks for a rest inside approaching weeks, such a rest might be accompanied by’ below the surface’ rallies in laggard/unloved sectors.”

Quite simply, advancements that might weigh on the major indexes by taking down leaders as Apple AAPL, +5.15 %, Amazon AMZN, 0.38 %, Facebook FB, 0.74 % and the other big-name tech players, would actually provide a tailwind for beaten downwards brands poised for a rebound.

“So,’ what do you visualize the market?’ is less interesting of a doubting when compared with,’ what do you talk about banks, commodities, emerging markets, defense stocks, tech, etc?'” Hayes claimed.

He made use of the chart as an example precisely how much family member urge for food there’s for tech lately:

Certain labels he pointed out that might come screaming way back in a post pandemic community include: Bank of America BAC, 0.47 %, JPMorgan Chase JPM, 0.05 %, Apache APA, -3.25 %, Murphy Oil MUR, 2.89 %, Boeing BA, 1.22 %, Lockheed Martin LMT, +0.43 %, MGM MGM, +1.58 %, Las Vegas Sands LVS, +2.23 %, Southwest Airlines LUV, +0.66 % and United Airlines UAL, -2.96 %, to name precisely a few with powerful set-ups.

Announcement of a vaccine, or perhaps main breakthrough that pointed to near certainty and also timeline on vaccine/treatment… would shift popular opinion FROM reduced recovery/growth (lower rates) – that benefits tech – TO faster recovery/growth (slightly larger rates) – which gains cyclicals,” he explained in his post. “When these groups turn, it will be abrupt.”

Banks, particularly, must see a huge action higher, he put in.

“Most folks are going to be chasing after banks when they’re trading at a 50 100 % premium to book as opposed to getting today – within instances that are a large number of – at a price reduction to book,” Hayes said. “How do we find out? Because it happens coming from every historical recession. There’s zero recovery with no Banks/Cyclicals directing from the gate (early/high progression stages). No credit growth, without recovery.”

In general, he remains bullish about what is in front, notably together with the aforementioned laggards.

“The catalyst will in all probability come from science at this point. Don’t bet against science,” he said. “I wouldn’t be astonished to see some volatility/chop over the subsequent few weeks. For now, maintain on dance when the music is actively playing, but keep your feet on the floor.”

For now, the stock current market is fairly silent, using the Dow Jones Industrial Average DJIA, +0.68 %, tech-heavy Nasdaq Composite COMP, +0.41 % in addition to S&P 500 SPX, +0.34 % each hovering all around the breakeven point in Thursday’s trading period.