penfoldss
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Defensive sectors are experiencing historic relative weakness:
The S&P 500 utilities sector relative to the S&P 500 is down to a record low ratio of 0.06.
This ratio has declined -40% since the 2022 bear market.
Over this period, the S&P 500 has rallied +106% while the utilities sector index has increased just +38%.
By comparison, during the 2008 Financial Crisis, the ratio was +200% higher, at ~0.18.
Meanwhile, consumer staples, healthcare, and utilities collectively now account for just ~15% of the S&P 500’s market cap, the lowest since at least the 1970s.
Defensive sectors are historically unpopular right now.

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