The bad reaction to Apple’s (AAPL) earnings was too much for
the technology sector to overcome and live up to their historical dominance in
the month of January. The tech sector
led the way for the month, on an average basis, throughout the previous twenty-five,
twenty, fifteen and ten months of January.
That trend did not continue in 2013 as energy stocks finished with the
best gains. You know it is a good month
when your worst performing sector achieved an average gain of 3.2% for the
month.
Performing exactly in-line with history was the health care
sector. January has always been a good
month for the sector which is fueled by the excitement surrounding the major
health care & biotech conferences.
From 1987 to 2012 the health care sector averaged out to the second best
performing sector for every time period examined. Unlike the technology sector, health care
stocks continued this trend in 2013, finishing as the second best performing
sector in January with an average gain of 7.61%.
For a historical view of the sectors February performance,
please refer to: http://allocationforlife.blogspot.com/2013/01/february-historical-sector-analysis_28.html
Returns for my managed AFL Cyclical Sector Model are updated
daily and can be viewed here:
25 Year
|
20 Year
|
15 Year
|
10 Year
|
Jan-13
|
|
1
|
Technology
|
Technology
|
Technology
|
Technology
|
Energy
|
2
|
Health Care
|
Health Care
|
Health Care
|
Health Care
|
Health Care
|
3
|
Financials
|
S&P 500 TR
|
Real Estate
|
Energy
|
Financials
|
4
|
Real Estate
|
Financials
|
Telecom
|
Real
Estate
|
Consum Discret
|
5
|
Industrials
|
Telecom
|
S&P 500 TR
|
Natural
Resources
|
Consum Staples
|
6
|
S&P 500 TR
|
Real Estate
|
Consum Discret
|
Financials
|
Industrials
|
7
|
Telecom
|
Industrials
|
Financials
|
Industrials
|
S&P 500 TR
|
8
|
Consum Discret
|
Consum Discret
|
Industrials
|
S&P 500 TR
|
Utilities
|
9
|
Utilities
|
Utilities
|
Utilities
|
Utilities
|
Natural Resources
|
10
|
Natural Resources
|
Natural Resources
|
Natural Resources
|
Consum Discret
|
Technology
|
11
|
Consum Staples
|
Consum Staples
|
Energy
|
Telecom
|
Telecom
|
12
|
Energy
|
Energy
|
Consum Staples
|
Consum Staples
|
Real Estate
|
Jon R. Orcutt is the founder of Allocation For Life, Author of The Allocation For Life Investment Newsletter, Author of "Master The Markets With Mutual Funds: A Common Sense Guide To Investing Success" and manager/creator of the AFL Models available to Allocation For Life subscribers at Folio Investing.
