Expectations Indicator – As of Sunday 5/3/09.
The theory behind the Expectations Indicator is that it is easier to exceed low expectations than high ones. For more information on the Expectations Indicator click here.
| Sector / Index | 5/3/2009 |
| Energy | Low Expectations |
| Materials | Low Expectations |
| Utilities | Low Expectations |
| Healthcare | High Expectations |
| Industrial | Low Expectations |
| Consumer Goods | High Expectations |
| Technology | High Expectations |
| Financials | Low Expectations |
| Consumer Services | High Expectations |
| Telecommunications | High Expectations |
| Real Estate | High Expectations |
| Dow 30 Industrial Average | Low Expectations |
Expectations seem to be lower in Industrials, Energy, Basic Materials, Utilities and Financials. I would suspect that Financials have had relatively low expectations for some time and will continue, since they appear to be the head of the beast. The Expectations indicator would appear to favor the higher yielding industries which typically show a risk adverse shift. Remember this does not constitute advice, just a liberal interpretation of an unproven (hopefully to be proven sometime in the future) indicator.
Since the Expectations Indicator concept is new, only time will prove this it useful or useless. This indicator will be released weekly until proven not useful. Going forward we will also be using popular Indexes to measure its success from the previous week. The indicator is for information purposes only and is not meant to constitute any type of financial advice. We also do not guarantee the accuracy of the above information and at any point may alter, change the process of producing it and or discontinue it.
Tags: Expectations Indicator
