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
 

  Sector Performance Via Market Cap. (2020-2021 and YTD-1/25/22)
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. Equities appear to be on the cusp of delivering the market correction, as measured by the S&P 500 Index, that many pundits have been forecasting. 
  2. A correction is usually defined as a 10.00% to 19.99% decline in the price of a security or index from its most recent peak. A bear market is defined as a 20.00% or greater decline in the price of a security or index.    
  3. As of the close on 1/25/22, the S&P 500 Index stood 9.18% below its all-time closing high of 4,796.56 (1/3/22), just shy of correction territory, according to Bloomberg.  
  4. 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. 
  5. For comparative purposes, at the close of 1/25/22, the S&P MidCap 400 and S&P SmallCap 600 Indices stood 10.84% and 11.55% below their respective all-time highs. Both are already in correction territory. 
  6. Large-cap stocks performed significantly better than their mid- and small-cap counterparts from 2020-2021 (black columns). YTD through 1/25/22, large-caps were in line with the performance of mid-caps, but were down a bit more than small-caps for the period (see table above). From 12/31/19 through 1/25/22 (period covered in the table that captures the COVID-19 pandemic), the S&P 500, S&P MidCap 400 and S&P SmallCap 600 Indices posted cumulative total returns of 39.38%, 29.55% and 30.61%, respectively, according to Bloomberg. 
  7. Sector performance can vary widely by market cap (see table). A couple of the more extreme cases (2020-2021) include Information Technology, Real Estate and Utilities.  
  8. As of the close on 1/26/22, 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 were 30%, 18% and 21%, respectively.
  9. 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 42%, 29% and 32%, respectively.
  10. 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 Thursday, January 27, 2022 @ 11:18 AM • 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
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
How Bonds Have Fared Since 8/4/20
US Stock Markets Ended Jan. 21, 2022
US Economy and Credit Markets Ended Jan. 21, 2022
Passive vs. Active Fund Flows
A Snapshot of Growth vs. Value Investing
US Stock Markets Ended Jan. 14, 2022
US Economy and Credit Markets Ended Jan. 14, 2022
The Real Rate Of Return On The 10-Year Treasury Note
Every Year Looks Volatile Compared To 2017
US Stock Markets Ended Jan. 7, 2022
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.