Market Summary

  • Financial markets (DOW, NASDAQ, S&P500) finished relatively flat for the month
  • Long-term indicators for an ongoing sector rotation from growth into value remain, but short term indicators favor growth
    • Value continues to outperform YTD- though growth stocks have pushed ahead in recent weeks

Factor Analysis


Sector Analysis


Closing Thoughts

  • The chart below shows a 3-year performance of DVY (dividend/value) versus the S&P500 (growth)
    • Sector rotation from growth into value has slowed in recent weeks, performance spread has begun to widen in the short-term

3-year performance differential

  • Second chart shows a 3-year comparison of the performance spread between the 2-Y and the 10-Y yields;
    • Investor fears continue as the gap in the yield curve continues to widen

Performance Spread Differential between 2-Y bonds and 10-Y bonds

Past Performance is no guarantee of future results

All performance related metrics were gathered from Fidelity Research