Why This Market Scares Me! (Update)
The following is an update on my 9/25/05 Post.
By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .
In the post, I stated that the market scared me because the leadership was isolated to defensive sectors (Energy, Real Estate and Healthcare). Here’s how 2005 shaped up by Sector:
Energy…………………….35.8%
Utilities…………………….14.6%
Real Estate……………….9.2%
Healthcare………………..7.8%
Financials………………….5.8%
S&P 500……………………4.8%
Materials…………………..4.3%
Technology……………….2.7%
Consumer Staples………1.4%
Consumer Cyclicals……(2.3%)
Telcom…………………….(6.3%)
I left out Utilities in my previous post but it too is a very defensive play. This is a telling sign that we’re at the tail end of the bull market and it’s likely we’ll see continued deterioration in the technical strength of the market. Be careful if the US$ or bonds sell off!
Matt
