SP 500 Sectors
Sectors: XLY 7.99% XLP 13.97% XLE 14.18% XLF 8.62%
XLV 16.07% XLI 9.55% XLB 3.19% XLK 22.04% XLU 4.39%
XLF= Financials are now a remarkably smaller percentage component than they were at the bull market high of mid 2007. Much like the effect of companies like Citi (now trading near $1) on the Dow 30, it is a worthwhile question to ponder the effectiveness of these indices as indicators of broad market activity with certain sectors and specific stocks so drastically skewing the indices they are components in.
Commodity Sectors
It is interesting to note the condition of energy and industrial metals specifically within the context of any future reinvigoration of the global economy. Certain intelligent observers like Jim Rogers have noted that these commodities are due for tremendous upside going forward due to the position of China. China remains in a state of previously unseen industrialization in modern history. In spite of the global recession, they are not laden with debt at all levels (consumer, business, & government) like the United States. This fact supports the asssertion that China's stimulus will likely be much more effective and could be a sign of a change in the prevailing winds of the market going forward.
Oh yes, and there is that $10 Trillion or so our government just printed. Inflation anyone? Bueller? Bueller?
