After the calm of the past two years, the volatility of the months of October and November can be especially hard to handle. Stocks are down quite uniformly, but the technology sector — which is the sector that was outperforming during the market rally — is also leading on the downside. There are always lessons in studying the past. So, let’s start today with a detailed look at how the main market sectors performed over a few trailing time periods ended November 20, 2018 (the day the Dow Jones Industrial Average erased all the gains for the year). Sector Performance… Read More
After the calm of the past two years, the volatility of the months of October and November can be especially hard to handle. Stocks are down quite uniformly, but the technology sector — which is the sector that was outperforming during the market rally — is also leading on the downside. There are always lessons in studying the past. So, let’s start today with a detailed look at how the main market sectors performed over a few trailing time periods ended November 20, 2018 (the day the Dow Jones Industrial Average erased all the gains for the year). Sector Performance As you can see in the table below, some sectors have been holding up better than others, most notably the utilities and consumer staples, reflecting — no surprise here — a flight to safety this quarter. #-ad_banner-#What might come as a surprise, though, is how different the long-term performance of the sectors has been. If there is a discernable trend here, it’s that growth has been strongly rewarded over the past decade. We can clearly see that the sectors that have, because of their structural nature, benefited from the productivity growth and other changes brought on by 21st century… Read More