US Sector Update: Friday, December 7, 2012

Healthcare leads the way, as this trend continues to present a positive long-term picture.  Healthcare is typically considered a "defensive" sector, but with very solid earnings and consistent earnings, that is being given priority in this volatile environment.  You can see Healthcare's relative strength trend over the last year below.

In somewhat the same theme, the defensive Consumer Staples sector has shown some strength in recent weeks.  This could be a defensive play, but probably more significant is a better news environment starting to emerge in some countries abroad.

The large-cap Consumer Discretion stocks are still doing okay, but some of the more mid-cap issues have been showing weakness.  This is not typical of the overall market, as we've seen the equal weighted sectors that had been slightly behind the large-caps in the performance race have actually been catching up.

Don Hays, Nicholas Warf & Justin Wood

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