Weekly S&P Performance

17 Jan 2016 11:58

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After including a weekly sector performance chart in a previous blog post I decided to make it a regular series.

in the second full week of trading the markets continued its downward trend. Looking at the sectors Utilities continues to be the preferred safe haven followed closely by Consumer Staples and Health Care.

The Materials and Energy continued to have the worst losses and probably comes as no surprise. The Financials however continued to get pounded and it is hard to believe that on a YTD basis they are the second worst performing sector. A pullback in large US banks or lending institutions with loan portfolios heavily weighted in energy or materials I understand but the rest of the sector collapsing is head scratching.

As a dividend investor it would be wise to keep an eye on other financials being pulled down from guilt by association. Financials areas where investments are looking attractive include insurance and investment service industries. Another area to keep an eye on are small local banks, they do not operate on the same grand stage as big banks and are more influenced by local economics than National.

The technology sector is another of interest and it is highly influenced by the FANG group (Facebook, Amazon, Netflix, Google) due to their high valuations. When FANG drags so does the whole sector. This is similar to the Financials where guilt by association may trigger some buying opportunities.

S&P Weekly Sector Perf S&P YTD Sector Perf

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