2007 in One Graph

Here’s an interesting graph. This is the relative performance of the ten industry groups in the S&P 500. Talk about a wide divergence! Eight of the ten groups outperformed the index. The other two, financials and consumer discretionary (as in homebuilders), dramatically underperformed.

One more thing. Notice how smooth the discretionary line is. That’s why quantifying risk is such a hard game to play.

Posted by Eddy Elfenbein on January 3rd, 2008 at 2:32 pm

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