Transcript
Hello, everybody, welcome to Friday was a great day for the S&P 500. Today was up 1.1%, almost. And it was really strong all day just kind of took off and continued up all day long. And the big story for today is Today’s the first day where we’ve had leadership from some of the stocks and categories that did really poorly during the downturn. They divided the S&P 500 up into 11 different industrial classifications. And so I follow us all the time each day to see, you know, where the leadership has been coming.
Most of the leadership since the bottom of the market has come from technology, biotechnology, health sciences, of all types, all things that we kind of need and our demand during this particular timeframe with this pandemic, and what have you and working from home and whatever. And so today, we saw a movement towards financials and energy and industrials. Well, if we go back to about the third week of May, that happened, then also we start to see a movement towards those type of stocks. And they did really well, all the way up until the 11th of June, on the 11th of June, the S&P 500 dropped almost 6% those particular pieces really, they got crushed in that in that downturn, and they didn’t come back. And it’s been almost a month. So but today’s the first day we’re seeing that happen again, which I think is kind of fascinating.
You know, theoretically, banks are at risk in this environment, because high unemployment, there’d be more bad loans, energies at risk, because people aren’t moving around as much travel is cut back and those types of things. And so we’ll have to see where this goes. Part of this is just because you know, the market again, is sort of like a rubber band. Technology and how sciences have jumped so much. And we’ve had such a good month, since the 11th of June. And so there’s bound to be some pullback and we saw some of that today. So that’s really the theory. That’s the thing to watch for. I think it’ll be really interesting to see if that carries through to next week. Sometimes things that happen on Friday don’t carry through to Monday. So we’ll see what happens there. But it’s an important component to watch out for this piece. So everybody have a great weekend, and I look forward to talking to you again on Monday. Thank you.