Скачать или смотреть Stock Dispersion Dramatically Increases - Setting Winners and Losers Farther Apart

Stock Dispersion Means Record Differences between the Winners and Losers

Daily single-stock dispersion in the S&P 500 is running at its highest level since 2009, with a YTD average sitting at 30%. 2009 and 2008 were both high dispersion years in the face of the financial collapse. So no surprise we are seeing high dispersion today. It likely dispersion will persist over the next year as previous dispersion peaks lasted multiple years.

What high dispersion means for investors:
First, focus on a winning sector or industry. The YTD spread between the best performing S&P 500 sector, Energy (50.3%) and the worst performing sector, Consumer Discretionary (-25.9%) is 76%. I own IYE iShares Energy as an easy way to get exposure to the energy sector. There hasn’t been as mush dispersion within the sector.

Energy, Consumer Staples, Health Care, Materials and Utilities have the strongest momentum in recent weeks. But aside from Energy you need to be selective within sectors.

Consumer Staples has about half the stocks with positive momentum. The winners have been focused in food and drink producers NOT the staples retailers. i.e. Mondelez (MDLZ) or Constellation Brands (STZ) , NOT Walmart.

Healthcare doesn’t have any trends within industries and you have to get the right stock.