• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

How Sector Leadership Has Changed Over The Last 20 Years

By Kurt Osterberg · On April 10, 2018

Stan Weinstein states in his amazing book that choosing the right sector to trade is just as important as trading with the overall market trend at your back. Just in the past year in 2017 we’ve seen this concept front and center with semiconductor stocks, cannabis stocks, and even bitcoin-related stocks all experiencing massive gains as each of those sectors was on fire for a period of time. This is the reason for studying all market sectors at all times because it increases the chances of catching a big trend.

If we go back in time and study the past 20 years it becomes apparent how market outperformance has transitioned between major sectors in the market. From 2001-2011 the leading sectors of the market were anything commodity-related, from gold miners to oil and agriculture producers to uranium and rare earth metals. This is generalized by the chart below which shows how the HUI Gold Bugs Index outperformed the Nasdaq 100 from 2001-2011.

Next from 2011-2015 biotech and healthcare-related stocks were the leading sector in the markets as evidenced by the chart below showing the ratio between the IBB Biotechnology ETF and the Nasdaq 100.

Finally everyone knows that the FAANG stocks have been some of the leading performers over the last few years. But in general it looks like Technology is the new leading sector of the market with semiconductor related stocks leading the S&P 500 higher from the start of 2016.

And software stocks have been outperforming the S&P 500 since the start of 2017.

Both of these sectors have put in large bases on their ratio charts with the S&P 500 which suggests that their new trends higher could last a few more years from here.

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    6 Levels of Commitment to Change

  • Finance

    4 Tips to Retain Top Employees in a World Where Burnout Consumes Us

  • Finance

    End-to-End Testing: Avoiding Software Failure in Distributed Systems

No Comments

Leave a reply Cancel reply

Top Finance

  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce
  • Hedge Funds In The US Hedge Funds In The US
  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • Kanban vs Scrum: Understanding the Tools for Agile Success Kanban vs Scrum: Understanding the Tools for Agile Success
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement

New Posts

  • 6 Levels of Commitment to Change

    6 Levels of Commitment to Change

    April 22, 2021
  • 4 Tips to Retain Top Employees in a World Where Burnout Consumes Us

    4 Tips to Retain Top Employees in a World Where Burnout Consumes Us

    April 22, 2021
  • End-to-End Testing: Avoiding Software Failure in Distributed Systems

    End-to-End Testing: Avoiding Software Failure in Distributed Systems

    April 22, 2021
  • When Things Look This Bad, How Can You Move Forward?

    When Things Look This Bad, How Can You Move Forward?

    April 22, 2021
  • 3 Common Mistakes to Avoid While Using 360 Multi-Rater Feedback

    3 Common Mistakes to Avoid While Using 360 Multi-Rater Feedback

    April 22, 2021
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.