One For The Recent Record Books?
Below is the chart from Novel Investor, of the annual returns of the 11 major S&P sectors, and incredibly no group has been the top performer in back to back years dating back to 2007. Technology is looking to do just that, and notice half way through 2020 it is doubling its nearest competitor in consumer discretionary, the only two groups positive at the half way mark (notice energy is looking at a third possible straight year of being in the cellar, which would make 5 of the last 6 the worst or second worst too). This is certainly technologies race to lose as it is being carried on the back of mega cap names like AMZN AAPL MSFT NFLX FB and GOOGL to an extent, and as these represent many ETFs in their top ten holdings, their share prices will continue to inflate. Another thing I noticed from this chart is that it may not be as impossible to beat the S&P 500 as many state. With the exception of last year, it never finished within the top three, and to me that shows if one can be concentrated not only in the right sectors, but the leaders within, strong success can be achieved.