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Category: Sectors

What Happens When Financials Lag?

What happens in markets when Financials are the worst performing sector? Entering 2016, nothing particularly good. We saw this in 1990, 2007, 2008, and 2011. 1990 marked the start of the 1990-91 recession. 2007 marked the start of the 2007-09 recession. 2008 was the worst year in markets since the Great Depression. The S&P 500 […]

“The financial sector moves with interest rates. It is poised to benefit from rising interest rates and will be punished should rates continue to fall.” – Investing Folklore Long-term interest rates have fallen sharply in 2016, the yield curve has flattened, and Financials are the worst performing sector in the S&P 500. Coincidence? Most would say […]

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it […]

Hunting for Growth

In the past few months, we learned that 4th quarter S&P 500 earnings declined 14%, their worst year-over-year decline of the expansion. With growth harder to come by, investors have been actively bidding up growth names wherever they can find them. The Russell 1000 Growth Index (IWF) has outperformed the Russell 1000 Value Index (IWD) […]

Momentum, Thy Name is Healthcare?

When you read the word “momentum,” what’s the first sector that comes to mind? I’m guessing it wasn’t Health Care. Looking at today’s market, though, there is no question about it – healthcare has become a momentum sector. We can see this clearly in looking at the largest momentum ETF from ishares (MTUM), which now has almost […]