For the month of April S&P 500 Equal Weighted, Value, and Quality equities have outpaced all other listed strategies.  Meanwhile, Sector Rotation, Momentum, and Low Volatility have fallen behind all other listed strategies for the month, including those allocated to as much as 70% and 50% bonds (i.e. Passive 70/30 and Passive 50/50).

Comments on this week’s report:

  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap, and narrows its gap between the best performing Sector Rotation on a year-to-date and surpassed Sector Rotation on a trailing 3-month basis.
  • Year-to-date Sector Rotation has outperformed all other listed strategies as its high concentration in the technology and industrial sectors (which were among the top performing sectors in that time frame) has driven it higher.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused its returns to be more volatile and risky.
  • Contrary to Sector Rotation, Low-volatility is outperforming all other listed strategies on a 1-year basis as it benefited from its relatively lower drawdown during the stock market correction at the end of 2018, while still participating in the more recent stock market rally.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock market has primarily experienced upward momentum.
Important Disclosures:  Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly from The Market Commentator℠, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in The Market Commentator℠ serves as the receipt of, or as a substitute for, personalized investment advice from The Milwaukee Company™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!