Markets Getting Defensive
A weak financial sector is offsetting the strength seen in the health care , energy and materials sectors...Altogether those three sectors comprised 23.7% of the S&P's market cap as of Feb. 11 while the financial sector, on its own, made up 20.7%...
That should lend some perspective on the influence of the financials in moving the market and, at the same time, provide some clarity on why the market isn't performing better than it is today with the energy, health care, and materials sectors all showing decent-sized gains...
Once again, an improving economy or even a stagflated economy, with higher commodities and energy costs, will cause interest rates to increase, this will drag down the bond markets & financial sector and keep the indices from rising...
Money is flowing towards defensive equities: energy, oil transports and some consumer cyclicals; and away from semiconductors, high tech and interest rate sensitive equities, homebuilding, MREITS and the financial sector.
That should lend some perspective on the influence of the financials in moving the market and, at the same time, provide some clarity on why the market isn't performing better than it is today with the energy, health care, and materials sectors all showing decent-sized gains...
Once again, an improving economy or even a stagflated economy, with higher commodities and energy costs, will cause interest rates to increase, this will drag down the bond markets & financial sector and keep the indices from rising...
Money is flowing towards defensive equities: energy, oil transports and some consumer cyclicals; and away from semiconductors, high tech and interest rate sensitive equities, homebuilding, MREITS and the financial sector.
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