The Divided Market

The movement within the stock market over the past few months has been very revealing. The cyclical based sectors have been doing poorly while defensive areas have done well. Or more accurately, haven’t been punished as much.

Here’s a chart of the S&P 500 Consumer Staples sector (in black) along with the S&P 500 Industrials (blue), Financials (red) and Materials (green).

Notice the gap between Consumer Staples and everyone else. This is the market’s way of expressing doubt about future economic growth.

Posted by on December 17th, 2018 at 11:23 am


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