View from the Observation Deck 

1. Today's blog post is an update of one we did on 5/17/16 (click here to view) and on 2/16/16 (click here to view). Today's chart reflects improvement relative to both of those previous snapshots. 
2. The S&P 500 Index, which is capitalization-weighted, posted a total return of 3.78% for the 12-month period ended 7/6/16, according to Bloomberg. On a price-only basis, which excludes dividends, the index was up 1.50%.
3. The averages in the chart simply reflect where each of the 500 stocks stood, by sector, relative to their 52-week high as of 7/6/16 (midday). Their respective cap-weightings were not factored into the calculations.
4. As of 7/6/16, the S&P 500 Index, on a cap-weighted basis, stood 1.46% below its all-time high of 2130.82, which was established on 5/21/15. That is an improvement from 3.01% on 5/17/16.
5. As indicated by the percentages in the chart, the three sectors reflecting the least damage over the past 52 weeks are all considered to be defensive in nature. No change from 5/17/16.

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. There can be no assurance that any of the projections cited will occur. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance, while the 10 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

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