Dividend Aristocrats
High Beta Breakout?
Last month we spent a full page explaining why the underperformance of the S&P 500 High Beta Index was not a bearish portent for stocks (Chart 1).
Bonds And Aristocrats
The last year has been a difficult one for any person or theme tied to the “establishment”—including mainstream Republicans, mainstream Democrats, EU commissioners and lobbyists, and, yes, even one of the established leaders of the cyclical bull market—the S&P 500 Dividend Aristocrats.
Bonds And Aristocrats
One of this year’s many perplexing leadership trends has been the weak relative action of the once-coveted S&P 500 Dividend Aristocrats in the face of a solid bond market rally.
Decline Of The Aristocracy
Veteran market analyst Bob Farrell reminds investors that when parabolic uptrends eventually stop, the next move is never sideways. We don’t know that the Dividend Aristocrats and other bond-like stocks traced out a true parabola into last summer’s peaks, but the ugly aftermath suggests they probably did.
Dividend Aristocrats Look Vulnerable
The mania for stability and dividend yield have been two of this bull market’s defining characteristics.
Bond Bubble Spills Into Equities
The S&P 500 once again remains on the verge of a new bull market high, thanks in large part to the bubble in another asset class: Bonds.
Correlation Breakdowns
We’d rather eat broken glass than have to forecast financial market correlations, but that doesn’t mean we ignore them altogether.
Beware Bond-Like Stocks
We certainly have nothing against dividends, but for more than a year we’ve believed that high-yielding themes like the Utilities, REITs, and the S&P Dividend Aristocrats have become so popular they’re likely to disappoint their new owners for a while.
Stock Market Leadership In 2014: Large Caps, Tech, Health Care
Following a great year for trend-following, capitalizing on key reversals in sector performance will be important in winning the 2014 performance derby.