Weekly Market Recap
Market Summary
- Small Cap stocks continued their recent outperformance
- Growth and value stocks both finishing higher
- Long-term indicators for an ongoing sector rotation strengthen
- Rotating from growth stocks into dividend/value
- Energy and financial sectors continue to gain ground
Factor Analysis:
Sector Analysis:
Closing Thoughts:
- The first chart shows the 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;
- Fed continues to maintain guidance on low interest rates –
- Historically, this has been a bullish indicator for financial markets
Past Performance is no guarantee of future results
All performance related metrics were gathered from Fidelity Research