Sector Returns Year-To-Date: Technology Sector The #1 Performer
By Corey Rosenbloom on March 12, 2009 | More Posts By Corey Rosenbloom | Author's Website
With the middle of March almost upon us, let’s take a look so far at the Sector Returns (AMEX Sector SPDRs) year to date to see what the Sector Rotation model might be telling us.
With little surprise, the Financial Select Sector ETF (XLF) grossly underperformed all other sectors year-to-date, losing 42% in just over a two-month period. That is financial devastation.
Strangely enough, the Industrials are showing the second worst performance (losing 30%).
The Utilities, Consumer Discretionary, and the S&P 500 index (^GSPC) itself came in next with a loss 20%.
Technically - for trivia buffs - the 20% decline in the S&P 500 year-to-date represents a full-bear market (historians often classify bear markets as a peak-to-trough decline of 20% in a major index). That’s by no means encouraging, however.
Enough with the bad news. Which sectors ‘held their own?’
As expected, it was the traditionally defensive sectors (Health Care and Consumer Staples), though they still lost money (they outperformed the S&P because they lost less money).
And another surprise emerged which is encouraging - the Technology Sector ETF (XLK) was the #1 performer (relative) with a loss of “only” 9%. This isn’t your expected type of behavior in a recessionary/bear market so that’s a sign of life. It doesn’t mean they’re going to make you money if you buy them, but to see relative strength in technology traditionally is a good sign - but don’t read too much into that yet.
Unless you’re shorting, the only way most investors make money is when a sector (or stock) actually appreciates in value, rather than showing “Relative Strength” to a declining S&P 500.
The Mob Rules - At Least So Long As Long As Goldman And The Fed Can Continue To Drive The US Dollar Into The Ocean
Dollars And Books Revisited
Stimulus Is Only Stimulating “Economic Misery”
The Problems With “Printing Your Way Out Of Debt”
Combining Bollinger Bands On Rates Of Change In The VIX
*Moody’s Changes China’s Ratings Outlook To Positive From Stable - 13 mins ago
Fonterra Raises 2009/10 Payout Forecast - 34 mins ago
*S. Korean Oct. Producer Prices Down 3.1% On Year Vs. 2.6% Fall In Sep. - 49 mins ago
*S. Korean Oct. Producer Prices Fall 0.8% On Month - 51 mins ago
India’s Economy Set To Grow Above 7% In 2011: PM - 1 hr ago



