Charts of the Week
S&P 500 Index Sector Performance (as of 09/30/16)
Chart of the Week for October 14, 2016 - October 20, 2016
Similar to the stock market as a whole, returns for individual sectors of the stock market experience fluctuations. For example, a sector may outperform other sectors for a period of time and then underperform in subsequent periods. The chart above compares the performance of the Standard & Poor's 500 Index ("S&P 500"), including dividends, to its 11 underlying sectors for the twelve month periods ended September 30, 2016 ("current" period) and September 30, 2015 ("prior" period). The S&P 500 is an index consisting of 500 companies representing larger capitalization stocks traded in the U.S. and is a benchmark commonly used to measure the performance of the U.S. stock market.
The S&P 500 rose 15.43% for the current period, and all 11 of the sectors posted positive returns, with nine of those sectors posting double digit positive returns. In comparison, the S&P 500 fell -0.61% for the prior period, and only six of the 11 sectors posted positive returns.
Eight sectors outperformed the S&P 500 in the current period led by Telecom Services (+26.82%), Information Technology (+22.82%), Materials (+22.25%), Industrials (+19.74%), Energy (+18.96%), Real Estate (+17.46%), Utilities (+17.37%), and Consumer Staples (+15.77%). Energy had the largest recovery between periods, moving from -29.68% in the prior period to +18.96% in the current period, as the rebound in oil prices helped issuers in that sector.
Market and sector returns fluctuate from year to year depending upon a variety of factors, which are very difficult to forecast. Therefore, it is important to understand the principles of investing before establishing an investment strategy to help ensure that it is consistent with your personal goals, risk tolerance, and time horizon.
Posted by: sarah_oz@yahoo.com
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