The Great S&P Sector Reshuffle

For this Labor Day Sunday and related to yesterday's column about the warning signs of a crash comes today's Big Picture edition borrowed from Barron's about the Great Market Reshuffle that is currently taking place.  The corresponding graphic is particularly instructive in showing just how dominant the so-called FAANG stocks are in the big picture.  To see the after-shot that shows the new sector "Communications Services" that has been created and how that has impacted allocations, click on the link.  Enjoy your Labor Day! 

The Great S&P Sector Reshuffle

September 2, 2018 11:00am by Barry Ritholtz

Via Barron’s:

“Sector investing won’t be the same, either, after the unprecedented overhaul by S&P and MSCI of their Global Industry Classification System, or GICS, a widely used taxonomy that carves up the stock market into sectors, industry groups, industries, and subindustries. The biggest change: A new sector, communication services, is rising from the ashes of the telecommunication-services sector, which will go extinct. The communication sector will cherry-pick stocks from the tech, consumer-discretionary, and telecom bins. And it will be a biggie, the fourth-largest (tied with consumer discretionary) out of 11, behind information technology, health care, and financials. S&P plans to reconstitute its indexes after the market closes on Sept. 28. MSCI’s changes will go into effect on Dec. 3.”

Sun 9-2-18 BigPic: The Great S&P Sector Reshuffle - The Big Picture