Energy Sector: Six Down, One to Go

At the start of the decade, the Energy sector represented 5.5% of the S&P 500.  Now, after passing both Consumer sectors, Health Care, Industrials, and Telecom Services, the Energy sector has overtaken Financials as the second largest sector in the S&P 500. 

With a weight of 15.26% of the index, only the Technology sector stands between Energy and first place.

In the chart to the right we summarize the changes in sector ranks between now and the turn of the century.  Interestingly, while Technology has had a rocky road, it remains the sector with the largest weighting in the index. 

As far as sectors which have been hurt from Energy's rise, it comes as little surprise that the Consumer Discretionary sector has seen the furthest fall.  In 2000, Consumer Discretionary ranked third with a 12.7% weighting.  Today, the sector ranks seventh with a weight of 8.5%.

Comments

[NOWHEREMAN:]

you are absolutely correct, there is one big caveat.

The percentage of the S&P reached should also approximate the percentages reached by those previous Bubbles.

2008 Jun 19 09:37 AM

[keanemd:]

Wow

You mean with the country's leadership of oil executives, the highest gainer in wealth over the last presidency was energy. I can't believe that happened.

2008 Jun 19 10:48 AM

[Greg Pinelli:]

Correct about what?? The article is informational..there is no analysis or conclusion drawn. Also paulwhatever..energy is not a "bubble." It's based on supply and demand...bubbles don't take money from other sectors because of consumer costs..they add to other sectors. Oil is a cost of doing business...corrections because of demand destruction are always somewhere down the road..in fact, decreasing US demand may be close at hand.

2008 Jun 19 05:28 PM

[wayne6:]

The title does point to a conclusion/prediction

2008 Jun 19 11:21 PM