PHILADELPHIA, PA, August 27, 2013 /24-7PressRelease/
-- According to financial executive Michael Lallana
, financial stocks are in the prime position to become the biggest industry in the broad stock index. Currently, these stocks are recognized as the second-biggest sector in the Standard and Poor's 500-stock index. Experts predict that they will soon overtake the Technology sector as the leader of the market.
in The Huffington Post discusses how banking stocks are starting to take over once again. Recently, the shares of Finance stocks nearly doubled the amount that they were at the peak of the economic crisis of 2009. Their shares are at 16.8 percent, whereas Technology is barely ahead at 17.6 percent.
Michael Lallana states, "Banking stocks seem to be gaining tremendous ground on the Technology sector and there doesn't seem to be anything in the foreseeable future to say that banks will dominate the stock market soon. I'm all for the improvement of the Financial sector, however I'm also a little cautious as to how this will mark the economy in the next few years as it was this sector that led to the financial crisis in 2009."
Lallana makes a fair point. While this is great for investors in the Finance division, these are not favorable conditions for the rest of the shareholders. For the past 30 years, everything becoming financed has caused major issues. The market crash of 2009 and income inequality problems were all due to the fact that Finance made up more than 20 percent of S&P 500.
Although these figures do not necessarily mean that trouble is imminent, it is a cause for concern. The biggest sectors of the stock market usually have the most attention drawn to them. That is because one small issue can cause pandemonium. Technology stocks made up a third of S&P 500 during their reign at the end of the dot-com bubble.
Michael Lallana wants to clarify that dominant sectors do not always herald trouble. The industrial sector dominated the S&P 500 with a noticeable 15 percent of index in 1990. However, recently, they have slipped into obscurity and now only make up 10 percent of the market.
The Finance sector has clambered their way to the top by traditional banking methods. This consists of essentially sucking up money around the world. Unfortunately, this practice is not healthy for the rest of the world's economy. The second quarter saw devastating results thanks to Bank profits. Banks saw a 27 percent increase to their profits at this time, and S&P 500 profits were only up by 3.3 percent.
Despite poor profits, S&P 500 has seen a 19 percent increase so far in 2013. Meanwhile, Finance increased by 26 percent. Many citizens are outraged at this sector's profitability, despite their overbearing regulations and scandals. Hopefully, Wall Street will be able to maintain stability so that they can help the rest of the economy. However, financial experts such as Michael Lallana are skeptical of the future of the market.
is the Founder and CEO of the Mila Venture Group. The company works as a business-marketing firm meant to accelerate other companies. Michael is also the COO and CMO of Health Matrix Direct LLC. His previous endeavors include working as a business developer for CrowdCrave.com and as a management consultant for Price Waterhouse Consulting. In his free time, Michael enjoys playing golf, watching USC Football, and visiting Disneyland with his daughter.