While Everyone Panics... These 3 Sectors Are Rising

When the first headlines hit on February 27 that the conflict in the Middle East was escalating, most investors expected the stock market to collapse.

Oil spiking. Shipping disruptions. The Strait of Hormuz under threat.

Historically, those are the types of events that spark panic selling across global markets.

And yes - we’ve seen volatility.

But something very interesting is happening beneath the surface of the market.

While the major indexes have bounced around day-to-day, several sectors are quietly holding up extremely well.

In fact, some areas of the market are showing relative strength despite the headlines.

This is exactly the type of environment where investors who focus on sector leadership instead of fear can uncover opportunity.

Three areas in particular stand out right now.

Range Global Coal Index ETF (COAL)

Coal is one of the most hated sectors on Wall Street.

But during periods of geopolitical stress - especially when global energy supply is uncertain - coal has a tendency to reappear as a critical backup energy source.

That’s exactly what we’re seeing now.

Since the war began, the COAL has held up extremely well as investors begin to price in tighter global energy markets and the possibility that countries may lean more heavily on coal to secure electricity supply.

Europe learned this lesson during the Russia-Ukraine conflict.

When natural gas supply became uncertain, coal plants that had been scheduled for shutdown suddenly came back online.

Energy security always wins over energy politics when things get tense.

And right now the market is quietly rediscovering that reality.

SPDR S&P Biotech ETF (XBI)

Another surprising area of strength is biotech.

XBI has been remarkably resilient despite the volatility across many growth sectors.

Biotech often behaves differently than the broader market because its drivers are largely scientific and regulatory catalysts rather than macroeconomic events.

Those catalysts don’t stop because geopolitical tensions rise.

In fact, when markets become uncertain, investors often rotate into sectors where innovation cycles continue regardless of global politics.

That’s one reason biotech has historically shown resilience during periods of market turbulence.

And right now we’re seeing signs that money is quietly flowing back into the space.

A historic shift just took place beneath the surface of America’s economy…

What’s unfolding is nothing short of the biggest resource boom since the California Gold Rush of 1848.

Only this time… the richest “gold fields” aren’t in the hills…

They’re thousands of miles offshore… hidden at the bottom of the ocean.

Watch the video to discover how to get in position today…

ETFMG Prime Cyber Security ETF (HACK)

The third area showing strength might be the most important long-term trend of all.

Cybersecurity.

Modern warfare is no longer limited to missiles and tanks.

It also happens in data centers, financial networks, and power grids.

Governments around the world are dramatically increasing cybersecurity spending to defend against digital attacks targeting infrastructure, banking systems, satellites, and communications networks.

That’s why HACK has held up well even as markets digest the geopolitical shock.

Cybersecurity isn’t a discretionary expense anymore.

It’s national defense.

And the companies protecting digital infrastructure are becoming just as critical as those building physical weapons systems.

Here’s what investors need to understand: Markets don’t just react to war.

They reprice the world that comes after it.

And right now the market is beginning to adjust to several realities:

That’s why despite the volatility, certain areas of the market are holding their ground.

Coal.

Biotech.

Cybersecurity.

They may seem like an unusual combination.

But together they tell a very clear story about where money is quietly flowing while everyone else is focused on the headlines.

Here’s to the future, 
Matt McCall
Founder, NXT Wave Research