Money Flowing Into Consumer-Based Stocks

Nick Perry (Schaeffer's Investment Research) submits: Last week we saw that energy-related funds were higher in a week where most ETFs showed a loss. This week we see a skew to the upside:

click to enlarge

Reversing the action of last week, we find that nearly three-quarters of my list is trading higher. In broad strokes it seems that money gravitated towards consumer based stocks, boosting the related ETFs. The PowerShares Dynamic Media Portfolio (PBS), which counts Comcast Corp (CMCSA), DIRECTV Group (DTV) and Walt Disney Co. (DIS) among it top holdings, was the strongest group. Also on the list are leisure & entertainment, consumer services, consumer staples, and food & beverage.

Looking to the bottom of list suggests some outflows from commodity-related funds. Gold and silver were the largest declines but you can also see that energy and oil services lagged. Bonds showed slight weakness.

For a longer-term perspective, the bullets below show how the ETFs listed above have faired over the last six-months, prior to this week.

Prior Six-Month Returns for This Week's Top Performing Sector Exchange Traded Funds:

* PS Media (PBS) +9.3%
* PS Building & Construction (PKB) +6.6%
* PS Retail (PMR) +11.7%
* First Trust DJ Select MicroCap (FDM) +7.5%
* PS Leisure & Entertainment (PEJ) +11.1%
* SPDR-Consumer Staples (XLP) +7.8%
* iShares DJ U.S. Consumer Services (IYC) +9.3%
* iShares DJ U.S. Financial Services (IYG) +7.7%
* PS Food & Beverage (PBJ) +6.8%
* SPDR-Financial (XLF) +8.7%
* PS Telecom & Wireless (PTE) +14.9%
* SPDR-Materials (XLB) +10.0%

Prior Six-Month Returns for This Week's Bottom Performing Sector Exchange Traded Funds:

* Wilshire REIT Fund (RWR) +22.3%
* Software HOLDRS (SWH) +19.0%
* SPDR-Energy (XLE) +11.0%
* iShares Lehman 7-10 Year Bond (IEF) +3.9%
* Oil Service HOLDRS (OIH) -1.1%
* iShares GS Software (IGV) +21.1%
* iShares DJ U.S. Energy (IYE) +13.2%
* iShares Lehman 20+ Year Bond (TLT) +7.5%
* Pharmaceutical HOLDRS (PPH) +10.8%
* Wireless HOLDRS (WMH) +1.0%
* iShares Silver Trust (SLV) +17.9%
* streetTRACKS Gold (GLD) +2.5%

Comments

[Sufiy:]

Investment Thesis: Google will bring markets down, USD will depreciate, Gold, Silver, Uranium, Energy and other Things will prevail

sufiy.blogspot.com/200...

2006 Dec 10 04:34 PM