Biotech Values

[DewDiligence]

The way S&P500 sector weightings have changed since the bear market low in Mar 2009 can be construed as bullish for healthcare and energy stocks and bearish for financials. Below are the sector weightings and how they have changed:

  
                  S&P 500 Sector Weightings 
  
                               Absolute  Relative 
              Mar2009  Current  Change   Change 
 Healthcare    16.1%    11.8%    -4.3%   -27% 
 Energy        14.3%    11.0%    -3.3%   -23% 
 Financial      8.9%    16.3%    +7.4%   +83%

These numbers can be interpreted in various ways, of course. My interpretation is that the healthcare and energy weightings have become too low and will increase in due course. Despite the fact that the financial sector had a much higher weighting at the bull market high a few years ago than it does now, I expect its weighting to decline (although not to the Mar 2009 level). JMHO, FWIW

Source: #msg-51362839