Asset Class and Stock Performance During the Current Easing Cycle

The S&P 500 has had some wild swings since the Fed began its current easing cycle with its cut in the Discount Rate on August 17th.  After rallying to new highs in October, the index has fallen 13.37%, but it is down just 3.93% since the close on 8/16.  At right we highlight the performance of the ten sectors that make up the S&P 500 since the easing cycle began, as well as the performance of oil, gold, the dollar and the 10-Year. 

Even though Financials and Consumer Discretionary have rallied of late, they are still the worst performing sectors since 8/16.  Financials are down 14.73%, while the Consumer Discretionary sector is down 10.62%.  The Materials sector is up the most at 10.14%, followed by Energy and Utilities.  The real winners have been gold and oil.  Since the current easing cycle began, gold is up a whopping 42% and oil is up 28%.  The dollar is down 8% and the yield on the 10-Year Treasury Note is down to 3.60% from 4.66%.

With Financials and cyclical sectors down, the easing cycle has yet to have an impact on the things it is supposed to impact most.  But where would things be without any intervention?

Below we highlight the best and worst performing stocks in the S&P 500 since 8/16.  CNX is up the most at 94%, followed by MON (77%), HES (64%) and RRC (48%).  ABK, MBI, ETFC and CFC are down the most. 

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Comments

[Justin]

Why isn't ABX (Barrick Gold) in the list of best performers since August 16th?

[Justin]

Speaking of gold, an interesting thing to look at this year would be the increase in the prices of gold and silver vs. the increases in earnings of the major gold and silver producers. Gold and silver producers should have strong earnings this year and they are still under the radar of most investors, which is quite curious since the HUI is up something like 900% since 2001, crushing the annual returns of all the major indexes.

[Justin]

Justin,

ABX is not in the S&P 500.

[Justin]

Thanks for the update. I'm surprised that ABX isn't in the S&P 500 though since it has a larger market cap than NEM. I enjoy reading the interesting data you guys come up with, keep up the good work!