Editor's note: This is a brief excerpt from today's Morning Newsletter by Hedgeye CEO Keith McCullough.
* * * * * * *
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:
- Number 1 (within the Top 9 S&P Sectors) for 2014 was Utilities (XLU) at +24.3% YTD
- 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.
