Monday, February 18, 2008
Performance of SPDRs since 2003
Above chart lists the performance of the sector SPDRs from 1/1/2003 to up until today. The table only shows the price performance, it does not include dividends or capital gains.
As you can see from the table below, the financial sector has been the worst performing sector since 2003. The 3 best sectors since 2003 were Energy, Utilities and Materials. When I was running the numbers for this post and was calculating the performance, I got a good chuckle out after seeing the final numbers. I can distinctly remember the investment environment of the late 2002 and early 2003. It was the time of deflation scare. When you have deflation, you precisely don’t invest in Energy, Utilities and Materials! Don’t you? You probably invest in Financials! Isn’t that the common wisdom? Isn’t that the general consensus? In the hindsight, it looks like that 2003 was indeed a great time to buy Energy, Utilities and Materials and avoid financials. It is amazing to see how consensus was absolutely wrong in 2003.
Now, lets talk about investment environment today. Is consumer dead since housing has collapsed? Are financials dead since credit bubble has popped? Are healthcare stocks dead because Democrats are looking to control both houses and white house? Are Energy and Materials a great place to be because of the global growth story?
We shall see in 2012.