In order to navigate the market effectively, it is important to understand the character of the action. What works best is constantly shifting, and if you are out of synch with the action, then you will struggle.
My view is that there are two basic types of markets. The first type is those that are driven primarily by macro and big picture issues. When the focus is on issues like unemployment, economic growth, a pandemic, or inflation, then the market will move around in a more correlated manner based on those issues.
The second type of market is one that is driven primarily by fundamentals and stock picking. When the macro worries are set aside, the market will focus much more on trying to find favorable stocks to buy. Quite often, stock picking becomes the focus after a major macro issue causes a large move and creates extreme movement. When there is a period of price dislocation, good stock picking is usually rewarded as things calm back down.
The current market environment is macro-driven. Stock picking just doesn't work right now. There are endless complaints about how 'good' stocks in the wrong sectors just keep going lower. Stock picking is just not working very well right now, but the longer it doesn't work then the greater the opportunities will be when it does work.
The current market has the added complexity of not only being macro-driven but highly rotational. Various sectors are moving in and out of favor, and they are being pushed around by sector ETFs and computer programs. If you own a great stock in a sector that is being sold, it will get pounded and vice versa.
I can assure you that we will see a shift back to stock picking eventually. I don't know when it will happen, but like bear and bull markets, the cycle is inevitable. Macro-driven rotations always eventually lead to mispriced stocks, and when there are mispriced stocks, stock picking will eventually occur.
Currently, I'm doing little as I wait for the rotational and macro movement to slow so that individual stocks start to matter again.