Searching for Relative Strength in the US
Igor Manukhov - Jan 31, 2025
More sectors are starting to outperform the broad market in US. That is good.
Last week, we have evaluated relative strength of Canadian sectors, and today, we will be looking to do the same for the US.
The chart below illustrates the relative performance of each US sector relative to the S&P 500.
Now, three sectors are outperforming S&P500: Consumer Discretionary (XLY), Communication Services (XLC) and Financials (XLF).
I am happy to see more sectors starting to join this outperforming group. Notice that industrial stocks are trying to rally (XLI is turning orange). This is a good sign.
Color coding is as follows:
- Blue and aqua bars indicate outperformance relative to the S&P500
- Light purple and purple bars indicate underperformance relative to the S&P500
- Orange bars indicate neutral performance relative to the S&P500
Sector symbols are:
- XLK – Technology
- XLY – Consumer Discretionary
- XLC – Communication Services
- XLE – Energy
- XLF – Financial
- XLI – Industrial
- XLB – Material
- XLV – Health Care
- XLP – Consumer Staples
- XLU – Utilities
- XLRE – Real Estate
This table allows me to quickly assess the relative performance of all sectors to determine areas of opportunity.
Besides US sectors, I track a variety of areas — countries, asset classes, investment styles, and more — in a similar format to quickly identify emerging opportunities.
