Financials Lead, Up...Will they lead down to? Chart of the Day

You hear the term "financial economy" a lot these days. But what does it mean? Well, in a word it means an economy where business activity is focused on buying and selling investments rather than building and selling products. Naturally, this kind of economy is great for investment retailers, namely securities brokers and dealers. As you can see from the chart, since March of last year the broker dealer index (XBD) has raced ahead of the S&P. The sloshing of money in and out of equities, bonds, and money market funds racks up big profits for the broker dealers, even if it doesn't for investors. Keep an eye on XBD as a put option candidate. I know I will.