Saturday, October 01, 2011

S&P500 losses in September dominated by 2 sectors

In past posts, I have talked about the distribution of the 9 sector SPDRs and their weight relative to each other.  In September, SPY (the S&P500 ETF) lost 4% in just one month, but it's interesting to note that of the 9 sector SPDRs, only 2 were down far more than the 4% - XLE and XLB (energy and basic material sectors respectively).

Along with other signs (such as gold dropping at the same time as fear of Greek bankruptcy, the Canadian dollar dropping to levels not seen in many years, etc) may be strong indications that the commodity cycle is finally reversing.

US stocks outside these sectors continue to look like outperformers going forward to me.

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