In case you haven’t noticed, the S&P 500 Index is outperforming almost every investment style through November.
As shown in the following heat map, the only styles that have beaten the S&P 500 (as of the end of November) are large cap core and large cap growth.
In November, the S&P has earned 3%, while large core has returned 3.7% and large cap growth has shined with an 11% return.
The total U.S. stock market has returned only 1.7% over the same period.
Drilling deeper, we see a wide range of performance across style-sector subsets.
Within large cap growth, 3 sectors have earned more than 25%: consumer discretionary, technology and utilities-and-phones.
By contrast, most styles in the energy sector have lost more than 25%.
So will December bring more of the same or reversals?
I see possible shifts.
Energy is beaten up enough, and P/Es of large growth stocks are now around 33 as of the end of November, according to my research. That’s 60% higher than the S&P 500.
Happy hunting in 2016.