S&P Financials Down 30% Over the Last Decade

An astounding fact, courtesy of my friend Nick Colas, chief market strategist at Convergex:

As investors hope for a new high in the S&P 500, consider the following fact: only one industry sector of the index is down over the last 10 years; care to guess which one?  It’s not Energy; that group is actually up 23% on a price basis.  Nor is it Materials, up 48%.  Yes, both those groups have underperformed the 65% price appreciation of the S&P 500, but they are at least up over the decade.

The answer is Financials, as measured by the market cap weighted index of that sector’s stocks in the S&P 500.  Over the last 10 years the group is down 29%, and as the TV ad people say ‘But wait, there’s more…”  The sector includes REITs, which are up 28% on a price basis (and more with dividends) over the last decade.  Since REITs are more than 10% of the “Financials” group over the period, this means traditional banks/brokers/insurance/card companies are down more like 33% over the last 10 years.  Again – the only industry group with a 10 year capital loss.

Michael Batnick built the below chart for me, it’s just the big bank holdings within XLF:



Six Things to Know about Financial Stocks Now –
Convergex – June 8th, 2016

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. eatverts.com commented on Sep 23

    … [Trackback]

    […] Here you can find 22134 additional Info to that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  2. 토토사이트 commented on Sep 26

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  3. evolution brokers review commented on Sep 30

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  4. luxury replica watches commented on Nov 25

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  5. toto hk commented on Dec 01

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  6. knockoff rolex explorer 114270 commented on Dec 17

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]

  7. rbc online commented on Jan 03

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2016/06/08/sp-financials-down-30-over-the-last-decade/ […]