This week we separate the sectors into three categories. In the first category, Industrials continue to "hang in there" in a continuing leadership position.
The second category has four sectors that are gaining attractiveness in the evolving market environment. Those sectors are Healthcare, Financials, Consumer Staples and the "defensive" Utilities. Three out of those four sectors continue some "defensive" characteristics, which by itself is a good internal "market" barometer as to what is spurring new stock investments. Economic concern is still rearing its head, it seems.
The third grouping of sectors are those that continue to lose momentum. These are Basic Materials, Consumer Discretion, Technology and Telecom. Even though Energy is being put in this grouping too, it is not really "losing" momentum as much as continuing to hold its own, but at a very low reading.
Check out the graphic below to see where both the market weight and equal weight S&P 500 sectors stand so far this year with their performance.
Don Hays, Justin Wood & Daniel Petzold
If you are a subscriber to HaysAdvisory.com, click here to read our recent reports. If you would like to learn more about the research and commentary offered by Hays Advisory, click here.
Please see important disclosures at the bottom of this page.