This week’s Market Update is posted at Alpha Baskets and includes the following;
It was widely reported that technology grew to take up 25% of S&P 500. Sector weightings in the index can give great clues for signs of excess in markets as was the case with energy growing to more than 30% of the S&P 500 in the early 1980’s, tech getting to 30% 18 years ago and financials at 22% at the peak in 2007. Where tech is often the largest sector in the index, 25% is less troublesome than if some other, usually smaller sector had become that large. For our money, 30% is unsustainable and tech at 25% is merely troublesome and an overweight now, to tech might not be prudent.
Please click through to read the entire update.
Here’s a link to my post at TheMaven about more poor decisions coming to light at the Harvard Management Company.
Over the weekend we took a road trip down to Tucson to visit the Chiricahua National Monument which is actually a couple of hours south east of Tucson and the Saguaro National Park in Tucson. If you like hoodoos (the primary geologic feature at Bryce National Park, then you’d love Chiricahua. The hoodoos in Bryce are red and tan while the ones in Chiricahua are gray with a lot of green lichen on them. It’s a small park, we hiked the Echo Canyon Trail which was through the hoodoos as pictured below.