The Cyclical-to-S&P 500 Ratio

I’ve often talked about the under-performance of cyclical stocks. Here’s a look at the Morgan Stanley Cyclical Index (^CYC) divided by the S&P 500. When the line is rising, cyclicals are out-performing. When the line is falling, cyclicals are trailing the market.

The ratio has plunged from 0.844 on February 11th to 0.705 on August 19th.

Posted by on August 22nd, 2011 at 1:20 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.