Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Sector Performance Via Market Cap. (2020 Bear Market & New Bull Market)
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. Equities have staged an impressive rebound after experiencing the fastest plunge (16 trading days from 2/19/20-3/12/20) into bear market territory in history. The bear market bottom was reached on 3/23/20. A bear market is defined as a 20% or greater decline in the price of a security or index.    
  2. The three major indices featured in the table comprise the S&P Composite 1500 Index, which represents approximately 90% of total U.S. equity market capitalization (cap), according to S&P Dow Jones Indices. 
  3. Large-cap stocks performed better than their mid- and small-cap counterparts during the bear market (red columns) and over the two periods combined in the table above. From 2/19/20 through 10/29/21, the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices posted total returns of 39.77%, 36.44% and 38.65%, respectively, according to Bloomberg. 
  4. Sector performance can vary widely by market cap (see table). A couple of the more extreme cases include Consumer Discretionary and Energy.
  5. As of the close on 10/29/21 (not shown in table), the S&P 500 Index stood at its all-time high, according to Bloomberg. The S&P MidCap 400 and S&P SmallCap 600 Indices stood 0.56% and 2.66%, respectively, below their all-time highs.
  6. The percentage of stocks in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices trading above their 50-day moving averages early in the trading session on 11/2/21 were 67%, 70% and 66%, respectively.
  7. The percentage of stocks in the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices trading above their 200-day moving averages were 69%, 65% and 59%, respectively.
  8. Moving averages tend to smooth out day-to-day price fluctuations and can be a useful tool for traders and investors to identify both positive trends and reversals, in our opinion.
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 an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The S&P MidCap 400 Index is a capitalization-weighted index that tracks the mid-range sector of the U.S. stock market. The S&P SmallCap 600 Index is a capitalization-weighted index that tracks U.S. stocks with a small market capitalization. The 11 major sector indices are capitalization-weighted and comprised of S&P 500, S&P MidCap 400 and S&P SmallCap 600 constituents representing a specific sector. 

Download a PDF of this post, please click here.
Posted on Tuesday, November 2, 2021 @ 12:23 PM • Post Link 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
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Snapshot Of Materials Stocks
The Price Of Crude Oil Has Surged During The COVID-19 Pandemic
Passive vs. Active Fund Flows
A Global Snapshot Of Government Bond Yields
The Price Of Natural Gas Has Surged
Technology Stocks Have Delivered Strong Returns Since The End Of The Financial Crisis-Induced Bear Market
S&P 500 Index Dividend Payout Profile
The Only Constant Is Change
Stock Buybacks by Sector
S&P 500 Index’s Dividend Payout Rebounding From COVID-19 Dip
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.
Follow First Trust:  
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 © 2024 All rights reserved.