US Sector Update: January 4, 2013

As we begin this new year, here's a look back at where the sectors ended 2012.
 

There is a definite change of personality in stocks and their sectors in the last few weeks as we've seen the economically sensitive sectors like Industrials and Basic Materials come back strongly from the dead - evidently not really dead buy only sleeping.

We've also seen the insurance and some of the capital management stocks in the Financials sector improve greatly.  Furthermore, when you look at just the "banking" industry in general, you find most of the strength still coming from the long-beleaguered large-cap banks.

As typical when economically sensitive sectors regain their footing, the somewhat defensive Healthcare sector has lost some of its leadership characteristics in the last few weeks.  The Consumer Staples, Telecom and Energy sectors are also definitely cooling.

Technology has lost it's big leader Apple as of late, but we are seeing some of the smaller-cap Technology stocks regain their footing.  We are keeping a close eye on this sector's progress in the recent strong stock market that seems to be favoring sectors that will benefit from an improving world economy.


Don Hays, Nicholas Warf & Justin Wood

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