Monthly ETF Sector Reports

Here are some observations regarding the data that the ETF Sector Data website has been generating. As the months go by I'll return here and add any further observations I find with regards to sector valuations and sector rotation strategies.

September 2024

September 2023 was a disaster for many investors, with all 11 main US market sectors down, except for energy. September 2024 was surprisingly robust given the month's reputation as being particularly volatile (especially to the downside).

September 2024 has turned into kind of a contradictory month. Utilities (arrow_drop_up5.39%) were up and Energy (arrow_drop_down2.9%) was down, which indicates we're in late cycle and heading towards recession. On the other hand Consumer Discretionary (arrow_drop_up7.64%) massively outperformed Consumer Staples (arrow_drop_up0.59%), and Healthcare (arrow_drop_down2.46%) struggled.

One sector that seems to be under the radar is Basic Materials (arrow_drop_up4.32%). This sector had a decent month. The soaring price of gold helped several of the major constituents of the underlying ETF. But more mundane chemicals seem to be having a modest resurgence. Does this mark the start of a new round of inflation? If it does then markets will almost certainly be smashed lower as we look to be heading into a rerun of the 1970's. Maybe this is why Financials (arrow_drop_down0.77%) appear to have run out of steam this month.