The S&P 500 Index was nearly unchanged in the first half of 2015, yet the divergences in underlying sectors told a very different tale. The tepid return in the major averages was generated by weakening in interest rate sensitive areas and continued strength in high growth leadership categories. This tug-of-war style market has created a relative valuation chasm between several important sectors that warrants close attention. Read more
As we near the midpoint of 2015, gains in the vast majority of diversified stock indices have been tepid at best. The SPDR S&P 500 ETF (SPY) is clinging to a total return of just 2% and has been jostling sideways in a narrow trading range over the last four months. This slowing price action in large cap stocks may trigger a search for other diversified ETF opportunities demonstrating more attractive technical momentum.
Everyone knows the first rule of investing is to buy low and sell high. However, in long-term bull markets, there is a theory that you should latch on to leading stocks and ride them for all they are worth. Stocks with a great deal of interest and momentum tend to gravitate upward faster than their peers. As a result, a basket of these high growth stocks has the potential to significantly outperform a broad-based index such as the S&P 500.
In our monthly ETF chart roundup video, we analyze the current trends of the market along with important technical indicators. The key themes to watch this month are large cap stocks, small cap stocks, international, interest rates, bonds, and commodities. Recorded after the market close on June 4, 2015.