Even if you are just a casual observer of the markets, you have likely seen how the worst performing stocks from the start of 2016 through the S&P 500’s closing low on 2/11 have been among the best performers since 2/11. Like individual stocks, we have seen the same trend play out for the S&P 500’s 60+ industries. The chart below compares the performance of each industry over the time frames YTD through 2/11 and 2/11 through 3/21. Generally speaking, the groups further to the left in the chart (weaker YTD returns through 2/11 are higher up on the chart (stronger returns since 2/11) than those industries further to the right.
Of the 62 groups shown, there are only six (table below) that saw positive returns over both time periods and just two (Health Care Technology and Diversified Consumer Services) that saw negative returns during both periods. As a final tidbit, if someone were to ask you what the worst-performing industry in the S&P 500 was YTD through 2/11, you would likely have chosen an industry associated with Energy, Materials, or perhaps even Industrials. The reality, though, is that the worst performing group YTD through 2/11 was Real Estate Management and Development (-32%), and most industries associated with Energy, Materials and Industrials had actually already bottomed in late January and not February 11th when the S&P 500 made its YTD low.