Interesting Chart on S&P 500 Sector Weightings

By on February 13, 2010

Bespoke Investment Group has posted an enlightening chart on the history (since 1990) of the relative share of stock market capitalization of the various sectors in the S&P 500.

Click on chart for larger image:

SMA Comment: What I take from looking at this info is that a sector can hold the lead over the other sectors for quite a long time. The financials were the dominant sector for 6 years running before they imploded beginning in 2008. It looks like anytime a sector becomes over 20 percent of the index it’s in bubble territory and due for a fall, but the crash may take years to materialize. Tech was the top sector for 3 years straight and reached an astounding 29 percent of total S&P 500 capitalization in 1999.

Source: Bespoke Investment Group

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