{"id":7593,"date":"2018-03-05T13:37:48","date_gmt":"2018-03-05T13:37:48","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=7593"},"modified":"2018-03-05T13:37:48","modified_gmt":"2018-03-05T13:37:48","slug":"tech-comprises-25-of-sp-500-market-cap-again","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=7593","title":{"rendered":"Tech Comprises 25% of SP 500 Market Cap (Again)"},"content":{"rendered":"
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Click to enlarge<\/figcaption><\/figure>\n

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Every so often, readers are updated on the SP 500’s sector rankings in terms of market cap weight and earnings weight.<\/p>\n

What surprised me more than Tech’s 25% weighting currently (versus its all-time-high of 33% weighting in March, 2000) was the market cap vs earnings weight of the Energy sector.<\/p>\n

While Energy’s market cap weight is 5.5%, the sector’s earnings weight is just 3.2%. The y\/y growth rates look good for Energy but it’s a small denominator.<\/p>\n

As the bottom of the spreadsheet shows, the 3 largest sectors of the SP 500 comprise 54% of the SP 500’s market cap currently. The top 5 stocks in the SP 500 are roughly 12% of the SP 500’s market cap.<\/p>\n

The benchmark is nothing but a large-cap growth fund in drag, a point raised on this blog<\/a> 6 months ago.<\/p>\n

Is Tech poised for a longer-term breakout ?\u00a0<\/strong><\/em><\/p>\n

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Click to enlarge<\/figcaption><\/figure>\n

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Chris Kimble Solutions, a technical analysis service, published this chart this weekend on Twitter and relative to Tech’s market cap weight, I thought readers might get some benefit from the look.<\/p>\n

Thanks for reading.<\/p>\n

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  Every so often, readers are updated on the SP 500’s sector rankings in terms of market cap weight and…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[95,194,169,123],"tags":[],"class_list":["post-7593","post","type-post","status-publish","format-standard","hentry","category-energy-sector","category-market-cap-weights","category-technical-analysis","category-technology"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7593"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7593\/revisions"}],"predecessor-version":[{"id":7599,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/7593\/revisions\/7599"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}