Sector Rotation – This Chart Shows A Radical Change in Preference

Looking at the last 12 week performance of the S&P 500 sectors shows a glaring reversal of sentiment. The past 6 weeks (weeks are shown with markers) have have had the worst performing sectors outperform those that were leading the prior 6 weeks.

In other words, the first 6 weeks in this 12 week cycle had utilities, staples and   healthcare outperforming. The last 6 weeks had financials, energy and industrials.

Obviously a rotational strategy is at work and a plan to pick up the dead wood as a reversion-to-the-mean is anticipated. In a race to goose performance, this makes a great deal of sense and it would not be surprising to see more of the same over the next few weeks.



Looking to invest in The Disciplined Investor Managed Growth Strategy?
Click HERE for the virtual tour….