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CHART OF THE DAY: 2014 Outperformance in Low Beta: #PAIN - 01.02.14 chart

Editor's note: This is a brief excerpt from today's Morning Newsletter by Hedgeye CEO Keith McCullough.

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If you’re a US equity only investor, the lower-volatility + higher-absolute-and-relative returns came in mostly slow-growth, lower-beta, #YieldChasing sectors:

  1. Number 1 (within the Top 9 S&P Sectors) for 2014 was Utilities (XLU) at +24.3% YTD
  2. Number 2 for 2014 was Healthcare (XLV) at +23.3% YTD

Yep, instead of being long #deflation (Energy stocks, XLE, DOWN -10.6% YTD), these slower-growth, lower-volatility sectors had similar returns to what? Yep – the Long Bond.