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Stocks & Commodities V. 30:7 (56-59, 64): Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan
Stocks & Commodities V. 30:7 (56-59, 64): Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan
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Trading Ticket: iShares Country ETFs by Jayanthi Gopalakrishnan
Select Sector SPDRs
Financial Select Sector SPDR (XLF) Consumer Discretionary SPDR (XLY)
We have seen our fair share of volatile markets over the past few years. Just when we thought the markets were gearing up for a nice rally, the economic problems in the eurozone sent them back to that same volatile behavior. Even though in times of economic crisis all sectors tend to follow the broader markets, there are some such as consumer staples, health care, and utilities that are considered safe havens. Then, just as the markets start to recover, sectors such as financials, consumer discretionary, and industrials tend to outperform.
In Giorgos E. Siligardos article this issue, Applying The Sector Rotation Model, the author states that the outperformance of energy, consumer staples, health care, and utilities warn of possible trouble in the broader markets, whereas the outperformance of financials and consumer discretionary sectors indicate a stock market flush.
In addition, Siligardos also suggests two sites where you can keep track of the performance of the various sectors. Let us take a look at these as our first step in analyzing sectors. The sector charts available at StockCharts.com (see end of this article) gives you a picture of the various Select Sector SPDRs. I chose the charts of the five sectors mentioned in the article using the Select Sector SPDR funds, XLF, XLY, XLE, XLP, and XLU.
Select Sector SPDRs
Financial Select Sector SPDR (XLF) Consumer Discretionary SPDR (XLY)
We have seen our fair share of volatile markets over the past few years. Just when we thought the markets were gearing up for a nice rally, the economic problems in the eurozone sent them back to that same volatile behavior. Even though in times of economic crisis all sectors tend to follow the broader markets, there are some such as consumer staples, health care, and utilities that are considered safe havens. Then, just as the markets start to recover, sectors such as financials, consumer discretionary, and industrials tend to outperform.
In Giorgos E. Siligardos article this issue, Applying The Sector Rotation Model, the author states that the outperformance of energy, consumer staples, health care, and utilities warn of possible trouble in the broader markets, whereas the outperformance of financials and consumer discretionary sectors indicate a stock market flush.
In addition, Siligardos also suggests two sites where you can keep track of the performance of the various sectors. Let us take a look at these as our first step in analyzing sectors. The sector charts available at StockCharts.com (see end of this article) gives you a picture of the various Select Sector SPDRs. I chose the charts of the five sectors mentioned in the article using the Select Sector SPDR funds, XLF, XLY, XLE, XLP, and XLU.
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