Tag Archives: energy

The Biggest Bull Didn’t Win

The big news in August was that the aging Bull market (since March 9, 2009) became the longest-running Bull market in S&P 500 history, as it posted an annualized 16.6% equity return and 19.1% with dividends, as my colleague, Howard Silverblatt pointed out.  While the record-breaking Bull market for the S&P 500 is spectacular, mid-caps and Read more […]

Exploring Commodity Equity and Futures

In April 2017, S&P Dow Jones Indices launched the S&P GSCI Dynamic Roll Reduced Energy 70/30 Futures/Equity Blend. This index is designed to measure the performance of a multi-asset allocation strategy that consists of a futures-based commodities index and an equity index that is based on various commodity-related GICS® subsectors. The futures portion is represented Read more […]

Small Cap Premium Is 5th Biggest In History

Small caps are outperforming large caps (S&P 600 (TR) – S&P 500 (TR)) in H1 2018 by the most in eight years, since H1 2010, from growing  concerns over rising tariffs and general U.S. foreign trade policy. In the past four months, the smaller companies have outperformed larger companies by 10.1%, contributing to the 5th biggest Read more […]

Small Caps Beating Large By The Most In 16 Years

Small caps just outperformed large caps for three consecutive months for the first time since Sep. 2016.  From Feb. through May, the S&P SmallCap 600 (TR) outpaced the S&P 500 (TR) by 9.5%. It is the biggest premium realized in a three month period since the three months ending in May 2002.  In fact, outperformance this big has only happened Read more […]

Here’s How A Rising Dollar Impacts Stocks

The U.S. dollar hit a 4 month high last week from concern over potentially faster interest rate hikes to control inflation as oil exceeded $70 per barrel and the lowest unemployment since 2000 was reported.  If the U.S. dollar continues to strengthen, it may be useful to know how U.S. equities moved historically in times when the Read more […]

Energy Stays on Top in April

The Dow Jones Commodity Index (DJCI) was up 2.9% for April 2018 and up 3.7% YTD, while the S&P GSCI was up 5.0% for the month and 7.3% YTD. Precious metals was the worst-performing sector in the indices and energy was the best. Exhibit 1 depicts the month-to-date and YTD performance of the sector indices Read more […]

Drilling Into Industries Finds What Lifts Energy Stocks With Oil

As oil prices continue to increase, the energy sector is rising but recently the mid and small cap stocks are outpacing the large caps.  Thus far in April (month-to-date through April 12, 2018,) the energy sector is leading all other sectors, but the S&P 500 Energy (Sector) is up just 4.8% versus the gain of Read more […]

Where May Equities Go From Here?

February ended the longest historical monthly winning streak of 15 months for the S&P 500 (TR) that lost 3.7%.  On a total return basis for the month, 10 of 11 sectors lost, which has only happened in 12 of 342 months or 3.5% of the time (all 11 lost together in 13 months for a Read more […]

Energy Stocks Beat Oil Futures In Rising Inflation

There may be a legitimate concern about rising inflation since inflation has been under the Fed’s target for years and there is now very low unemployment with signs of accelerating economic growth.  The low unemployment rate and strong growth are probably positive for the stock market and the tax cuts may provide even more upside.  However, Read more […]

Large-Cap Energy Stands Out in a Year of Low Volatility

Most sentient investors are aware of the low volatility that characterizes the current environment, with the S&P 500®’s trailing twelve-month annualized volatility at approximately half its level from a year ago. This trend was driven in part by some significant negative inter-sectoral correlations, for example between information technology and real estate versus financials, and energy Read more […]