The Markets December 28, 2010

Financial Services Takes Lead in Russell 3000 Weighting

The U.S. broad-market Russell 3000 Index began the decade with technology as the most heavily weighted sector, but now the financial sector has emerged as leader.
Reported by

As of December 29, 2000, the technology sector comprised 20.2% of the Russell 3000, but as of December 27, 2010, it had dropped to second place.  Financial services ranks first with a 17.3% weight as of December 27, 2010, according to a press release, while the materials and processing sector in the Russell 3000 continues to hold the lowest weighting (December 29, 2000: 2.9%, December 27, 2010: 4.8%).  

In developed markets outside the United States, as reflected by the Russell Developed ex-U.S. Index, financial services also ranks as the most heavily weighted sector, reflecting a weight of 24% as of December 27, 2010, as it did at the end of 2000. Technology (December 29, 2000: 12.8%, December 24, 2010: 6%) and utilities (December 29, 2000: 13.2%, December 27, 2010: 7.9%) have seen their weightings decrease significantly since the start of the current decade.   

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Technology holds the lowest weighting in the Russell Developed ex-U.S. Index (6%). 

 
 Russell 3000 Index Russell Developed ex-U.S. Index 
Russell Index Sectors Sector Weights December 29, 2000  Sector Weights December 27, 2010 Sector Weights December 29, 2000  Sector Weights December 27, 2010 
Technology20.2%  16.7% 12.8%  6.0% 
Health Care14.8% 11.2%7.1% 6.6%
Consumer Discretionary12.0% 13.0%13.6% 10.8%
Consumer Staples6.3% 8.0%5.1% 8.2%
Energy6.3% 11.1%6.7% 9.6%
Materials & Processing2.9%  4.8% 9.0% 14.5%
Producer Durables8.8% 12.0%8.9% 12.4%
Financial Services19.8% 17.3% 23.5%  24.0% 
Utilities8.8% 5.9%13.2%  7.9% 
Data & Research December 28, 2010

Wide Support Seen for Later Retirement Age

Seventy-one percent of those participating in a recent poll believe Baby Boomers should be encouraged to work past normal retirement age.
Reported by

The Marist College Institute for Public Opinion conducted the poll and reported that 69% of Americans – including 71% of Gen-Xers and 61% of Millennials – say they have a responsibility to provide for those who retire before them.

The greatest concerns of Baby Boomers – 77 million Americans born between January 1, 1946, and December 31, 1964 – about life after age  65 are finances (48%) and health (34%).

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According to the news release, 61% worry that Baby Boomers will bankrupt Social Security, while 59% believe the needs of aging Boomers may overload the healthcare system.

Younger generations diverge from their elders in some key areas. Thirty-one percent of Millennials feel that Boomers should be encouraged to retire, versus 8% of the Silent-Greatest generation and 16% of Boomers themselves. Likewise, 37% of Millennials believe they should bear no responsibility to provide for retirees.

The report details the findings from a telephone survey taken between December 2-8, 2010, of 1,029 adults in the continental U.S.

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