A few weeks ago, the S&P 500 closed above 1,400 for the first time since May 2008, before the Lehman Brothers collapse led off the financial crisis. In total, the index [1] has gained a remarkable 11% so far this year (compared with 0% for all of last year).
That's good news, right?
Well, lower-yielding financials and tech stocks have led the move higher, while defensive high-yield utilities and master-limited partnerships (MLPs) have lagged to the downside.
For instance, the Alerian MLP Index is up less than 1% year-to-date, while the utility sector, down more than 3%, is currently the worst-performing sector in the S&P 500.
Last year, these two groups outperformed as nervous investors sought safe dividend [2] returns amid volatile markets. This year, however, the reverse started taking place. Financial and technology companies listed on the S&P 500 have risen about 17%.
Investors have taken more chances on increased signs of economic recovery in the United States and easing concerns about Europe's debt crisis. As a result, some are investing their capital into riskier sectors, such as energy, that can benefit from economic growth. (more)
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