It seems that over and over we see cycles in the stock sectors. What is hated and out of favor today will turn around and become the honey of Wall Street.
From the lows of early October '11 financials and major banks have, in many cases, doubled up in price. This move has not seen the top and may continue. An ETF that follows the action of major banks is KBE. Along those lines, a similar action has taken place in REIT sector. Check out IYR.
Which areas of the stock market are bound for a turn-around? In my opinion, I believe that in the coming months we'll continue experiencing trend reversals in "B-R-O" (banks, REIT's, and then oil).
The oil sector is at its worst in several years. Patience in finding a base and an entry point where we can profit on the inevitable turn is the sign of a good investor. The oil industry is followed closely by XOP, an ETF. Several months from now I expect to see a reversal in prices for oil, stock value for oil producers, and the oil service industry. It's a matter of time.