Previous Investment Strategy Group reports detailed the frequent performance shifts in stock market sectors.
After two consecutive years at the top of the 11 S&P 500 sectors, investors now wonder if the Technology sector can break precedent by becoming the only sector in the last 31 years to lead the S&P 500 three years in a row.
The Technology sector led S&P 500 sector performance 10 times in the previous 31 years, and three times topped the S&P in two consecutive years (1993-1994, 1998-1999, and 2019-2020). With expectations that the sector this year could produce a nearly 14% year-over-year earnings gain, it is not unreasonable to think the sector could be at, or near, the top of the performance ranks again. In contrast to prior years, however, topping the other 10 sectors this year might be a more formidable task.