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July 10, 2020

Equity Market Dispersion

Equity markets were one of the first areas of the economy to decline, but saw a relatively quick bounce in May and June, with markets now hovering close to the level they were at in January 2020.Ā  While many sectors and individual companies have bounced back with the overall market – some have not.Ā  This dispersion of returns suggests that investors are paying attention to company specific situations even during these unusual times.

The charts below explore this dispersion of returns by looking at the performance of the S&P 500, its sectors, and constituents over the course of 2020.Ā  The top chart shows the Year to Date returns of the S&P 500 and each constituent.Ā  The chart on the lower right shows the dispersion of returns by sector.Ā  It is interesting to note the variance in returns within each sector suggesting that company specific events are playing a role in company returns.Ā  The chart on the lower right corner shows the change in market cap by sector, with the width of the bars representing the overall size of each sector as a component of the S&P 500.

 

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If you are interested in further discussion about the analysis in these charts and the implications for securities litigation, please contact us.

Industries: Financial Markets
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