Initially, everything melted up — in what could only be described as a post Trump short squeeze for the ages. The most significant gains have been found in construction and material stocks — up anywhere from 15-40% since November 8th. Second to the materials are the banks. Contrary to what the cucked media is saying, the banks aren’t going up because Trump is secretly a Wall Street shill. The banks are going up for one simple reason: the yield curve has steepened from 80bps to 129bps. For a banker, that spread is pure profit.
While the gains enjoyed by these sectors steal the headlines, I think it’s important to take note of the broad market cap gains across the biggest sectors, in order to assess a true and pure analysis of the gains.
Sector/Collective Mkt Cap/1mo Return
Drugs – Major/2.1t/+1.8%
Major Oil/1.68t/+6.5%
Internet Info providers/1.57t/+1.88%
Money Center Banks/1.38t/+17.5%
Chinese Burritos/1.3t/-1.1%
App Software/1t/-0.16%
Conglomerates/965b/+6%
In short, if you weren’t long a bunch of banks or oil stocks over the past month, your portfolios marked time. As a point in fact, out of $10 trillion in market capitalization in the aforementioned sectors, just $4 trillion of them enjoyed gains more than 2%.
The biggest losses were endured in gold and foreign utilities (currency fuckery), down 16.5% and 15.9%, respectively.
Over the past two weeks, the rotation and dichotomy of the market was much more pronounced.
Sector/Collective Mkt Cap/2 week Return
Drugs – Major/2.1t/-4.1%
Major Oil/1.68t/+5.9%
Internet Info providers/1.57t/-2.3%
Money Center Banks/1.38t/+3.4%
Chinese Burritos/1.3t/-1.25%%
App Software/1t/-2.4%
Conglomerates/965b/+1%
The biggest losses were endured in shipping and biotech, down 9.7% and 7.8%, respectively.
Not too healthy, eh? The market isn’t a zero sum game. Gains are merely transferring from one sector to the next — frustrating momentum traders with classic misdirection.
It’s also worth noting, the biggest market of all, the bond market, has been ravaged — with losses in TLT at 9.3% over the past month and -2% over the past two weeks.
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Dr. Fly,
Is there a way for us to see up to date sector performance in Exodus? Thanks.
of course. Go to the industry page and at the far right toggle the time frames. Also, on any stock or sector, the ‘returns’ sections demonstrates gains/losses v SPY. If you need a demo, let me know.
Thanks, Sir