We choose our repeatable process here at Hedgeye over hope. It's all about measuring and mapping the market data.
While many investors were hyperventilating over stock market volatility the past couple weeks, we encouraged Hedgeye subscribers to remain calm. Wait and watch. Study the bounce. Last week was a case in point as to why.
The Nasdaq led the charge, up +1.4% on the week. Year-to-date performance for the Nasdaq is now +6.6%. Sticking with what we've liked for the past 15 months has been the right move.
S&P 500 Sector Performance
On the early February bounce in stocks, Growth sectors, like Technology (XLK) and Consumer Discretionary (XLY), are still beating yield-sensitive sectors (Utilities, Consumer Staples and REITs) within the S&P 500.
S&P 500 Style Factors
In the table below, we cut up the performance of the S&P 500 another way via "style factors." As you can see in the far right column, the best performing styles within the S&P 500 year-to-date are Growth (Top 25% Sales and EPS growth companies are up 4.4% and 2.8% respectively) and High Beta stocks versus Low Beta, up +4.6% versus -0.9%.
IT ALL BOILS DOWN TO THIS...
The sector and style factor performance are telling investors the same story. Stick with U.S. #GrowthAccelerating assets. (Learn more about how we select our favorite ETF ideas with ETF Pro.)