From the desk of Steve Strazza @Sstrazza
Every weekend we publish simple performance tables for a variety of different asset classes and categories along with brief commentary on each.
As this is something we do internally on a daily basis, we believe sharing it with clients will add value and help them better understand our top-down approach. We use these tables to provide insight into both relative strength and market internals.
This week we want to highlight our US Equity Index and Factor tables, as they are both showing near-term reversions in some of the most robust long-term intermarket trends.
This week we saw Mid (MDY), Small (IWM) and Micro-Caps (IWC) outperform the Large-Cap Indexes. If you look at the 1 and 3-month change data, you will notice this was a real divergence from the current trends across market-cap segments. In fact, Large-Caps have been outperforming their smaller-cap peers for several years now. While one week certainly doesn’t make a trend, we’re keeping an eye on this.
Low-Volatility (SPLV) over High-Beta (SPHB) and Growth (IWF) over Value (IWD) have been some of the strongest structural relative trends for years now. In fact, Growth has been significantly outperforming Value for over a decade. This week we saw these trends retreat a bit as High Beta and Value significantly outperformed their peer groups.Lost Password?