By Alex Gurvich, portfolio manager at The Rockledge GroupNEW YORK ( TheStreet) -- This is an unbelievably good market, one may say. As of May 16, the S&P 500 is up 3.3% for the month and over 15.7% for the year. Just look at the numbers, the S&P 500 had six consecutive positive months and only four negative months for the past 19 months going back to October 2011. If we continue at this rate the S&P 500 might be touching 2,000 mark by the end of the year. It all looks wonderful, doesn't it?
Source: Yahoo! Now let's look at the performance, year to date, of the defensive sectors, typically represented by the Staples (XLP), Health Care (XLV) and Utilities (XLU) sectors.
Source: Yahoo! The picture is quite telling. All three sectors, except for Utilities in the past couple of weeks, have significantly outperformed the S&P 500.
The first thing this is telling me is that this is not a typical bull market. A solid bull market should be and will be driven by the fundamental business growth and positive economic outlook and it should be driven by the growth companies and sectors they represent. Right now it seems investors want to participate in the rally, but are certain of neither the length nor the foundation of the bull market. In other words, we want to have it both ways: safe (invest in safe sectors) and greedy (fully invest in and bid up the market). This is a very strange -- should I say unsustainable? -- bull market.
What's pushing the market is the incredible money printing machine brought to us by the Fed. While the printing machine is working the music is playing, and like Chuck Prince, the former head of Citigroup (C), said in July 2007, "as long as the music is playing, you've got to get up and dance. . . ." The problem is that the music will stop and investors will get hurt. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.