
Please try another search
This site’s “Style-Box Update” done every 6 weeks is being posted this morning in the spreadsheet above, and it shows that while large-cap growth has reasserted itself since June 30th, 2021, the small-and mid-cap “value” asset classes are beating their growth brethren, probably thanks to the Energy and Financial sectors.
Here’s what is interesting: in the bottom-half of the style-box spreadsheet, I’ve started logging the 1,3, 5, etc. rolling returns for the various asset classes, and note the 15-year returns.
If anyone is interested in making the case that everything’s “stretched” or overvalued, or at minimum has run far too long in one direction, this table might be the resource.
“Value” hasn’t outperformed “Growth” on a wide scale since 2016, but is doing so this year.
The YTD sector return chart is from Bespoke, yesterday, and shows Consumer Discretionary leading sector returns this year through 11/15/21, not a surprise given Tesla (NASDAQ:TSLA) is the largest market-cap weight in the sector. Per Bespoke, Tesla is still up 30% since 9/30/21 despite the recent drop.
Summary / conclusion: Having to prepare clients for the prospect of bear markets to come in the future, unlike the late 1990s, it’s tough to find any reasonable value in the United States asset classes, which is not a surprise with a 1.6% 10-year Treasury yield in the US. One of the few asset classes with anything close to an appealing 10-year return is gold (SPDR® Gold Shares (NYSE:GLD)).
The length of this bull market can be calculated either from the bottom in March ’09 (12–13 years), or the point when the S&P 500 made a new all-time-high in late April–early May ’13 (8 years old).
Split the difference and we have a 10-year old secular bull market when most secular bull markets last 15–20 years.
At some point the S&P 500 will correct 15%–20% (which won’t even erase 2021’s YTD 26% return) and then true investor sentiment can be gauged.
We could debate this stuff forever. Stay vigilant.
Take everything you read with substantial skepticism. Capital markets can change quickly.
• Trump’s trade war, inflation data, and last batch of earnings will be in focus this week. • DoorDash’s imminent inclusion in the S&P 500 is likely to trigger a wave of...
The big US stocks dominating markets and investors’ portfolios just finished another earnings season. They reported spectacular collective results including record sales, profits,...
“Quality” stocks with strong fundamentals tend to be rewarding places to stash hard-earned money. Since 2009, investing in a basket of quality stocks over a standard index has...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.