Performance Year-To-Date {Market Sectors}

Today we'll continue our year-to-date performance covering different parts of the market based on our own unique view of asset allocation.  Today were going to show various sectors and subsections that we think are representative of a broad strata of the sectors in the US markets.  This data is through May 21, 2018.  You can click on either of the charts below if you would like to make them larger.  Performance chart is from Stockcharts.com, although the ETF selection is my own.  Also I believe the performance data shown above does not include dividends.  If I am correct then the total returns on these indices is actually better than what is shown below.  Let's start with the more cyclical sectors.

Energy and technology have handily outperformed most market sectors and especially the S&P 500 which is listed in red all the way to the left.  This makes sense as oil has seen a substantial move higher in 2018 while most of the organic growth in the markets resides in the technology and information based sectors of the market.  Transportation and industrials have slightly lagged the market and the materials sector has barely managed to eke out a small gain. 

The more non cyclical areas of the markets have more or less lagged the S&P 500.  Only biotechnology and consumer discretionary sectors have done better than the market overall.  Consumer durables, utilities and staples have significantly underperformed.  Probability suggests that opportunities could present themselves in the consumer areas of the market at some future point.  Health care has also slightly underperformed, while financials have so far not seen much benefit from higher interest rates.  Higher rates still means there is a higher potential for outperformance for this sector in the coming months. 

*Long in client and personal accounts in some manner most of the sectors listed above with the exception of clean energy, transports and utilities.  Also Amazon is a component of certain ETFs we invest in for client and personal accounts.  Short S&P 500 in a personal account as part of a separate individual strategy.  Positions can change at any time without notice on this blog or via any other form of electronic communication.  Positions can change at any time without notice on this blog or via any other form of electronic communication.