Tag: sectors

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 […]

The New Tech: Changing Sector Behavior Over Time

  • Sectors
  • Charlie Bilello

Industries change. Companies change. Valuations change. It should come as no surprise, then, that sector behavior in the stock market can change as well. Let’s take a look back at the ten S&P 500 sectors since data became available in October 1989. Defensive vs. Cyclical We generally break down the sectors into two main categories […]

Is Energy In a Secular Decline?

Energy is the worst performing sector in the S&P 500 this year and has come under increasing pressure over the past few months as the price of Crude has plummeted to $75 a barrel. The underperformance this year has been significant, but the shift really started years ago, back in the middle of 2008 when […]

More risk equals more return. Less risk equals less return. This is one of the investment maxims dictated by the Capital Asset Pricing Model (CAPM). But is this always the case or are there market anomalies that show otherwise? Simply stated, is it possible to achieve a higher or equivalent level of return with lower […]