S&P500 vs Financial sector 2023-03-27 - all weak/weaker, and why has insurance company LNC fallen 61% in 5 months?
This post provides a detailed comparison of the four industries within the Financial sector. As expected, none are knocking the cover off the ball in a time of rising interest rates. But are those rates going to start falling? If so, are these industries off to the races? Or are there more cockroaches hidden somewhere behind the walls besides the ones that got caught in the middle of the kitchen floor when the lights were flipped on in the middle of the night?
Big question, as highlighted in the post headline and below: how can an ostensibly staid Life Insurance company fall 61% in five months? (Lincoln National Corp.) Exactly what story is being told by this?
Downloadable reports
S&P500 vs Financial Sector
This report compares the current and recent strength of the S&P 500 index and the Financial sector. Spoiler alert: none of these are currently strengthening per this perspective.
S&P500
The following graphic lists the S&P500's current "Strongest" stocks and the detailed report download link is below the graphic. The biggest sub-industry contingent of seven stocks is Computer Software & Services/Application Software, followed by four in Medical Appliances & Equipment.
Banking
Finally stabilized a bit this week. Nice to have less excitement for a change.
Financial Services
One of the Strongest stocks here is a Cathie Wood Ark Innovation ETF/ARKK holding, DraftKings Inc./DKNG. Perhaps this is a leader that will help bring that former darling ETF back to glory?
Insurance
If curious, Berkshire Hathaway/BRKB is rated as "Weak" in the Property & Casualty sub-industry. Lincoln National/LNC is "Weakest" and remains in the doldrums of a 72% decline that started in October 2021. The worst part of this has been the 61% decline since late October 2022 - is a staid insurance company supposed to act this way?
Real Estate
Much cyber-ink has been spilled over the dismal prospects for Office in the commercial real estate space. Deservedly so. Just because everybody knows something doesn't mean the juice has been fully squeezed out of that incredibly sour lemon. Although this is, as always, #notaprediction.