Market Summary
- Financial markets (DOW, NASDAQ, S&P500) all finished lower to end the week
- Long-term indicators for an ongoing sector rotation from growth into value remain
- small cap value continues recent outperformance
Factor Analysis:
Sector Analysis:
Invesco QQQ Trust Series 1 (QQQ)
The More Things Change, the More Things Stay the Same…
First 8 weeks of 2021 (1/1/21-2/25/21)
First 8 weeks of 2020 (1/1/20-2/25/20)
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
- While growth has outperformed value on a long-term basis, the performance spread is narrowing in the short-term
3-year performance differential
- Second chart shows a 3-year comparison of the spread between the 2-Y and the 10-Y yields;
- Investor fears continue as the gap in the yield curve widens
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