The financial industry has been returning to its old status-with a vengeance.
According to Bespoke Invest, ``The weighting of the Financial sector in the S&P 500 has made a huge move since the March lows. After being the biggest sector of the market for six years in a row, the weight of the Financials dropped all the way down to 8.9% (6th place) on March 9th, 2009. After the recent rally we've had, the Finanial sector has nearly doubled its weight to 15%, and it now ranks 2nd behind the Technology sector (18.8%). Technology, Financials, Industrials, Consumer Discretionary, and Materials are sectors that have gained market share during the bull market, while the other five sectors have lost share. The Financial sector has gained the most, while Health Care has lost the most (16.1% to 12.5%)." (all bold highlights mine)
Additional comments:
Financial industry epitomized the boom bust cycle six years prior to this rally
From leader to laggard to next to the leader (anew)- seem to signify the same dynamic of the past-another boom bust cycle with a cosmetically altered appearance.
US government has been massively backstopping the Financial Industry relative to the other industries
The resurgent financial industry accounts for as the impact from the massive reflationary measures engaged by policymakers
The implicit guarantees via the "Bernanke Put" and the "Too Big To Fail Syndrome" places a premium to financial industry, where investors (or even rescued institutions) have been stampeding into them.
According to Bespoke Invest, ``The weighting of the Financial sector in the S&P 500 has made a huge move since the March lows. After being the biggest sector of the market for six years in a row, the weight of the Financials dropped all the way down to 8.9% (6th place) on March 9th, 2009. After the recent rally we've had, the Finanial sector has nearly doubled its weight to 15%, and it now ranks 2nd behind the Technology sector (18.8%). Technology, Financials, Industrials, Consumer Discretionary, and Materials are sectors that have gained market share during the bull market, while the other five sectors have lost share. The Financial sector has gained the most, while Health Care has lost the most (16.1% to 12.5%)." (all bold highlights mine)Additional comments:
Financial industry epitomized the boom bust cycle six years prior to this rally
From leader to laggard to next to the leader (anew)- seem to signify the same dynamic of the past-another boom bust cycle with a cosmetically altered appearance.
US government has been massively backstopping the Financial Industry relative to the other industries
The resurgent financial industry accounts for as the impact from the massive reflationary measures engaged by policymakers
The implicit guarantees via the "Bernanke Put" and the "Too Big To Fail Syndrome" places a premium to financial industry, where investors (or even rescued institutions) have been stampeding into them.
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