Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Consumer Stocks Have Outperformed The Broader Market Over The Past 10 Years
Posted Under: Sectors
Supporting Image for Blog Post

 

View from the Observation Deck 

  1. Today's blog post compares quarterly total returns for the S&P 500 Index versus a 50/50 split between the S&P 500 Consumer Discretionary Index and the S&P 500 Consumer Staples Index.
  2. For the 10-year period ended 6/30/16, the 50/50 split outperformed the S&P 500 Index in 21 of the 40 quarters.
  3. In that same period, the 50/50 split posted 10 quarters of negative total returns, compared to 11 quarters for the S&P 500 Index.
  4. The 50/50 split also outperformed the S&P 500 Index over the entire period. From 6/30/06-6/30/16, the 50/50 split posted an average annualized total return of 11.16%, compared to 7.42% for the S&P 500 Index.
  5. Why target consumer stocks? Historically, consumer spending has been credited with generating as much as 67% to 70% of U.S. gross domestic product (GDP). That stat is derived from U.S. personal consumption expenditures, which stood at 68.4% in 2015, according to Haver Analytics. Others argue that consumer spending's influence is overstated.
  6. In an article in The Wall Street Journal in April 2014, economist Mark Skousen argued that capital investment and business spending in the intermediate stages of the supply chain actually accounts for more than 50% of economic activity, while consumer spending represents less than 40%. Either way, consumer spending has a significant influence on U.S. economic activity.
  7. As of 6/30/16, the S&P 500 Consumer Discretionary Index and the S&P 500 Consumer Staples Index carried a combined weighting of 22.9% in the S&P 500 Index, according to S&P Dow Jones Indices. 

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance. The S&P 500 Consumer Discretionary Index is a capitalization-weighted index comprised of companies spanning 31 subsectors in the consumer discretionary sector. The S&P 500 Consumer Staples Index is a capitalization-weighted index comprised of companies spanning 12 subsectors in the consumer staples sector.

To Download a PDF of this post, please click here.

Posted on Tuesday, July 26, 2016 @ 12:13 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS


 PREVIOUS POSTS
Stocks Ended July 22, 2016
US Economy and Credit Markets Ended July 22, 2016
The Best-Performing Sectors Since 5/21/15, 8/25/15 and 2/11/16
The Search For Yield In the Bond Market
Stocks at All-Time Highs But It's Just Second Hand News
Stocks Ended July 15, 2016
US Economy and Credit Markets Ended July 15, 2016
Health Care Stocks Are Mending Slowly
A Snapshot Of S&P 500 Index Dividend Increases In The Current Bull Market
Stocks Ended July 8, 2016
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.