A Bit of Sector Rotation
Looking at S&P sector valuations today is not too terribly different from looking at them last month.
From the table below, one can spot a few changes: Tech and Financial stocks have gotten a bit pricier, while energy stocks have followed the price of oil down.
InfoTech maintains a premium to the market that is ridiculous, even in light of Tech's alleged growth prospects. Energy, meanwhile, finds itself trading at a substantial discount to the overall market.
Dividend yields have fluctuated a bit, with payouts and prices varying, but Telecom remains a generous dividend-paying sector these days, even beating out dividend stalwart Utilities.
As I mentioned last month, I'm not one to wager on sectors for the short run, but a look at that Energy valuation bolsters the case made by the likes of Siegel and Yardeni for overweighting Energy for the longer term. If I were to do such a thing, I would probably employ a low-cost sector ETF, such as Vanguard's Energy Viper, VDE or S&P's Energy Spyder, XLE.