Research Excerpts

Will The Lights Go Out In The Utilities Sector?

Posted on: Monday, October 10th, 2011

The following (green highlights) is a chart and a brief excerpt from our Monday October 10th Keys To This Week report (click here for a recent sample copy).

Key To This Week, one of 8 different reports that we produce for Asbury Research subscribers at various intervals throughout the month, is a detailed weekly outline of key market factors and corresponding charts that are most likely to influence US financial market direction during the upcoming week.

Asbury Research’s Keys To This Week
October 10th, 2011
US Stock Market Sectors: Utilities

Chart 5 measures the flow of investor assets in and out of the various sectors of the S&P 500 via a pie chart that displays the percentage of sector bet-related assets, as represented by the Rydex Sector Funds, that are invested in each sector of the S&P 500, as represented by the iShares Select Sector SPDR ETFs.

The chart shows that, through the end of last week, 10% of all sector bet-related assets were being allocated to Utilities – which is more than triple the 3% daily historic average since 1998 (when the Sector SPDR ETSs began trading).

These data indicate that Utilities are also severely over-invested versus the other sectors of the US broad market indexwhich has historically coincided with the beginning of multi-month trends of relative sector underperformance.


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