Market Summary

  • Financial markets (DOW, NASDAQ, S&P500) finished mostly flat for the month
  • Long-term indicators for an ongoing sector rotation from growth into value remain strong
    • Value outperformed growth for the month and continues to outperform YTD
      • Led by small caps

Factor Analysis

Sector Analysis

Closing Thoughts

  • The chart below shows a 3-year performance of DVY (dividend/value) versus the S&P500 (growth)
    • While growth has outperformed value on a long-term basis, the performance spread is narrowing in the short-term
      • Performance data is consistent with an ongoing sector rotation from growth into value

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