By Benjamin Dressing The correlation between the S&P and industry is traditionally a tight one. Historically, as industrials perform well, the market follows suit.
However, over the past year or so, the S&P has outperformed industrials, due in no small part to the overperformance of tech stocks. This is worrying analysts who fear a market correction will be necessary to return the correlation to traditional levels.
Before we jump to any conclusions, let’s consider Caterpillar (NYSE: CAT), which is one of the major holdings of the Industrial Select Sector SPDR Fund (NYSE: XLI), an $11 billion industrial-themed ETF. In the past, Caterpillar has been a …read more
