Seeking Alpha

Tech (XLK) is the new defensive sector, its 14.8 PE ratio continuing to trail traditional...

Tech (XLK) is the new defensive sector, its 14.8 PE ratio continuing to trail traditional cautious plays like telecom (IST), consumer staples (XLP), and utilities (XLU). At a lofty 22 PE ratio, telecom leads all S&P sectors - it's a pretty fancy multiple for a slow-growth sector, but investors are attracted by the lofty yield. The S&P (SPY) as a whole has creeped up to a 14.8 ratio.
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Comments (2)
  • tr4head
    , contributor
    Comments (329) | Send Message
     
    Where thou goest APPL thou goest XLK. So, if you think APPL is a bargain, have at it - I believe Apple is about 20% weighted in the XLK or index. But if Apple continues to retreat, you would be better off getting a nice 4% yield in XLU. The selling of XLU has been pretty meek of late, like today.
    16 Jan 2013, 05:25 PM Reply Like
  • tr4head
    , contributor
    Comments (329) | Send Message
     
    Also, XLU PE is actually LOWER than XLK.
    16 Jan 2013, 05:26 PM Reply Like
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