Tech vs. Financials - A process of repair

When the tech sector rolled over in 2000 it went through the classic bursting of a bubble. After an initial rebound in 2003, the sector spent the next seven years underperforming on a relative basis as excess ownership was distributed into the market. ....so, after the collapse in financials through 2008/9 the sector rallied off the bottom and now unfortunately is displaying the same poor relative performance characteristics as tech did following 2004. It is likely that multiple compression will rule the day for the next several years as over-ownership is slowly washed out in favor of more timely opportunities.

(Chart courtesy of Mark Deriet - Cormark Securities)