Financial Stocks Sink

Here’s an interesting chart. This shows the performance of the S&P 500 Spyders (black line, left scale) compared with the Financial Spyders (blue line, right scale). These include dividends.

This is an interesting chart because it shows two things. First, you can see how closely the financial sector tracked the overall market for the last five years. It never really overperformed or underperformed.
The second part is that you can see how much that relationship has broken down in the past few weeks. Financial stocks have been getting clobbered far worse than the market.

Posted by Eddy Elfenbein on August 3rd, 2007 at 11:27 am

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