Nice use of a ratio chart!

1. If you look at the mth ratio chart of SPX vs the XJO overall the SPX has outperformed the XJO (for the period 1985 onwards).
There are instances when the denominator (XJO) outperforms the numerator (during the dot com bubble & china gdp is in the teens buying raw materials). They saved us a few times especially as we had a budget surplus!
Reason for the outperformance is tech.



2. Agree with you XJO testing new highs but not due to the material sector which has the same weightings as financials.

3. Looking at sector returns for the last month tech, financials,...... still outperforming materials



4. Materials still lagging probably due to the under performance of the 3 biggest (weightings) ie: BHP, RIO, FMG) on the index ?