Plotlines: “Early-cycle” stocks outperforming so far this year
A basket of stocks meant to send the first smoke signals of broader recovery is on a tear. Will the broader market follow?
The Merrill Lynch early cycle index, made up of auto makers, home builders, retailers and building materials companies, is up 6.8 percent this week and 7.25 percent so far this year. To compare, the benchmark S&P 500 is off 6.5 percent in 2008. (All of the XE components are in the S&P 500). Within the XE, there have have been big comebacks in home builders – Pulte Homes