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Eddy Elfenbein submits: Since May 5, the S&P 500's market value has fallen by $807 billion. That's a nice chunk of change. Percentagewise, it comes to -6.74%.

What's interesting to note is that since the stock market peaked, long-term interest rates have actually declined. So if we use some reasonable assumptions, in just five weeks, the market has become convinced that around $50 billion of next year's corporate profits will not materialize.

The Big Bad Bear, however, hasn’t treated everyone equally. Here’s the performance of the 10 industry sectors since May 5:

Utilities....................+0.78%
Staples....................-1.61%
Telecom..................-2.00%
Health Care.............-2.28%
Financials................-5.60%
Discretionary..........-5.68%
Industrials...............-8.71%
Energy....................-11.41%
Tech.......................-12.12%
Materials................-13.30%

Two observations. First, it's almost the mirror image of the market before May 5. The other is that it’s a pretty wide gap. The bottom three groups combined make up just 27% of the S&P 500’s value, but have contributed more than half the losses. The rest of the market has suffered nary a scratch.

So is this a major turning point? A new period of leadership for defensive stocks? It's hard to say just yet. These turning points don't make their appearances widely-known. Afterall, the energy stocks have been outperforming the S&P 500 for over seven years, and materials stocks have been the index for nearly six years.

The two major defensive sectors, staples and health care, have been almost completely ignored by the bull market. Since mid-October 2002, the health care sector is up just 7.2% and staples are up 10.9% while the S&P 500 has grown by 38%.

The yield on the 30-year T-bond now closely follows the price of oil. The correlation is up to 80%, which is a 15-year high.

Source: The Big Bad Bear By Sector