The only thing flatter than the S&P 500 returns during December were the overall returns for the index for the full year of 2011. The major benchmark for U.S. equities finished December with only a 0.85% change to the upside while for the year the index finished only 4 hundredths of a point lower than the 2010 close. Dividends included, the total return for the S&P 500 for 2011 came in at a measly 2.11%.
To get a better idea of what comprises that 2.11% return, below are the annual returns for each sector:
| Sector Name | December Return | 2011 Return |
| Healthcare | + 3.61% | + 15.42% |
| Consumer Defensive | + 1.69% | + 11.42% |
| Utilities | - 0.24% | + 5.59% |
| Energy | - 0.68% | + 3.75% |
| Communication Services | - 0.31% | + 3.74% |
| Technology | - 1.71% | + 1.71% |
| Real Estate | + 2.43% | + 1.54% |
| Consumer Cyclical | - 1.25% | + 0.76% |
| Industrials | - 0.21% | - 2.55% |
| Financial Services | - 0.20% | - 14.37% |
| Basic Materials | - 4.22% | - 16.36% |
Believe it or not there was a sector worse than the financials as basic material stocks surpassed the losses of financials by almost 2%. On the other side of the coin, 2011 saw Healthcare as the strongest performing sector which reversed course after having a greatly underperforming 2010. The sector likely benefited as focus within the government shifted from healthcare reform to financial reform.
Looking forward to 2012, I am looking for the Utilities, Real Estate and Industrials sectors to lead U.S. equities higher. I believe the positive signs shown by the housing economic indicators towards the end of the year will be the first in a series of signals letting investors know growth will return in 2012.
