Contrast that to today's strong -
performing utilities sector.
Not exact matches
In the periods since the stock market peaked for the year in January, and after its most recent top mid-March,
utilities, traditionally a defensive group of companies, have been the best -
performing sector.
In
sector news,
utilities became one of the worst
performing sectors in Wednesday's trade, closing down 1.53 percent, after U.K. Prime Minister Theresa May promised new caps on energy bills.
Utilities was Europe's best -
performing sector on Monday, popping 1.39 percent by the close.
If you look in terms of how various
sectors performed, the
sector that held up the best was
utilities, followed by staples.
Weighed down by rising interest rates, real estate and
utilities are two of the worst -
performing sectors this year.
A big year for
utilities and health care The best
performing sector in the market is ironically one that's not represented in the Dow Jones Industrials at all.
Although traditional high dividend payers (think the
utilities and telecom
sectors) have
performed strongly in recent years, they've become quite expensive by most valuation metrics.
Utilities have been among the best -
performing sectors this year.
Under -
performing sectors included
utilities, healthcare, pharmaceuticals, natural gas, precious metals and real estate.
Ideally, when it comes to which
sectors you're investing in, you'll have a nice mix of both defensive and cyclical stocks — meaning companies that should hold up well in all kinds of markets (like
utilities) and others that can be expected to
perform particularly well in certain economic environments (like hotels and restaurants, which benefit when the economy is booming).
Underlying the noise is a vision of a domestic banking and finance
sector at least partly in line with the picture painted by the venerable Vince Cable: light years from the casino economy, there to
perform a
utility function, more Captain Mainwaring than Bob Diamond.
At the same time, minimum volatility strategies have been competitive and health care and
utilities, traditional defensive
sectors, are the second and third best
performing sectors year - to - date.
During the last two market downturns, an investor that invested in an equal weighted composite of non-cyclical
sectors (staples, healthcare,
utilities, and telecom) lost an average of 13 % less than S&P 500 ® index, and the best
performing defensive
sector averaged losses of roughly 20 % less than the overall market.
The information technology
sector is cyclical and generally has
performed well in increased interest rate periods, while the
utilities sector has significantly underperformed.
In the last couple months the
utility sector has finally started to under
perform the broad S&P 500, as you can see from the CNNMoney chart above.
I decided to look at
sectors who under -
performed the broad market and one of such
sectors is
Utilities, which took a hit lately and year growth amounted only to +4 % compared to +23 % of S&P.