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Matt's Market Insights

 

The chart below summarizes current conditions and behaviors in the equity markets. Beginning in early March we've seen a divergence between growth stocks (small-caps, tech, momentum) and what some would refer to as "real" companies -- companies that produce tangible products, have strong earnings and pay dividends.

 

The red and green lines below show the performance of the Russell 2000 and the NASDAQ, which are comprised of small-caps and tech companies respectively. These two averages unhinged from the broader group in March and have continued to underperform their counterparts. The three lines grouped in the center of the chart (purple, pink and turquoise) represent the NYSE, Dow Industrials, and S&P 500 respectively. These averages have held their own and have benefitted from the rotation to value. Leading the markets for the past two months have been the Transports (black line) and the Utilities (top blue line)

 

 

 

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