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Jun 16 2021

Schrödinger’s Style Box

  • Jun 16, 2021

The performance derby between actively managed portfolios and passive benchmarks is strongly influenced by market conditions.  Active manager success rates are cyclical, but not random, and are driven by slippage created from style, size, and weighting considerations that result from the imperfect slotting of active portfolios into single style boxes.  Moreover, this slippage can be defined and measured, and shows a clear correlation with relative return spreads between benchmarks and their opposite boxes.

May 04 2011

Dow Performance: A Matter Of Weighting...

  • May 4, 2011

Are the Dow Industrials benefiting from trivial weighting? Slicing our Leuthold 3000 universe into market cap deciles shows different performance results than commonly followed market indices.


Jan 03 2007

Weighted Versus Unweighted: Inside The S&P 500

  • Jan 3, 2007

In 2006, the capitalization weighted S&P 500 was up 13.6%, excluding dividends. The average return for the 500 stocks (S&P equally weighted) was up 14.2%.

Oct 05 2005

S&P 500 Energy Weight Is Misleading: Fewer Constituents, Not Less Market Cap

  • Oct 5, 2005

S&P 500 Energy weight is misleading. Adding the largest multi-national integrated oil companies to the S&P’s 10% energy weight doubles it to 20%.

Apr 05 2005

Recent S&P Sector Weight Trends Within The Current Bull Market

  • Apr 5, 2005

The S&P 500’s largest and most rapidly increasing sectors.

Jan 05 2005

Large Cap Versus Small Cap

  • Jan 5, 2005

Small caps continue to be the market leaders over large caps. This trend is expected to continue into 2005, as our small cap leadership model has recently improved, and is now rated slightly positive.

Aug 04 2004

Sector Spotlight: Health Care Watch

  • Aug 4, 2004

The near term is becoming more uncertain for Health Care stocks, as HC groups have experienced an erosion in GS Score strength.

Jul 04 2004

Sector Spotlight: Health Care Watch

  • Jul 4, 2004

We view Health Care as a key theme in 2004. The sector is defensive and sports high growth rates thanks to the large (and growing) demand from elderly Americans.

May 05 2004

Sector Spotlight: Health Care Watch

  • May 5, 2004

There was a brief pause last month in our Health Care scores, and we were proceeding with caution. This month, our GS Score work regained some of that lost momentum.

Apr 05 2004

NASDAQ vs. S&P Market Weights

  • Apr 5, 2004

Comparing the sector weights between the NASDAQ and the S&P 500.

Mar 03 2004

Sector Spotlight: Health Care

  • Mar 3, 2004

Conceptually we think that the big drug stocks are poised to rebound, but they have yet to rank Attractive in the Group Selection Scores.

Jan 05 2004

Tech Watch

  • Jan 5, 2004

The broad Tech sector has rallied significantly from lows and is not cheap by tradi­tional valuation measures. Upside driver is earnings momentum, which continues to be strong.

May 05 2003

Historical Swings In S&P 500 Sector Weights

  • May 5, 2003

A look at favoritism shifts in broad economic sectors, 1977 to date. Large weights prone to correction.

Apr 05 2003

Answering Client Questions

  • Apr 5, 2003

Each month, we get a number of client questions via meetings, phone calls, and e-mails regarding various aspects of our research.

Mar 05 2003

The Case For Cutting Back On Financials

  • Mar 5, 2003

Expect the S&P 500 financial weighting to fall to 14% or so over the next two years, as they underperform the overall S&P 500 index.

Mar 05 2003

The Big Swings In S&P 500 Sector Weights

  • Mar 5, 2003

History shows us a number of economic sectors besides technology which have also experienced broad swings as the tide of investor enthusiasm ebbs and flows.

Mar 05 2003

Answering Client Questions

  • Mar 5, 2003

We always welcome the chance to hear what’s on our readers’ minds, and have often found that seeking answers to these questions can lead to new research topics, interesting charts, and new ways of looking at things.

Aug 04 2001

Tech Watch…..S&P Tech Subset Down 5% In July

  • Aug 4, 2001

Worse than expected Q2 earnings (losses) beat down the tech sector in July. The bad news just won’t end.

Jul 03 2001

Tech Watch…..Tech Turns Up In Late June

  • Jul 3, 2001

After weathering a big correction in March and early April, Tech stocks have recently acted pretty well considering the dismal earnings and worsening outlook.

Jun 05 2001

Tech Watch…..Weak In May

  • Jun 5, 2001

Tech stocks struggled again as a torrent of disappointing news showered the group in May.

May 05 2001

Index Sector Weights and Comparisons With Sales and Earnings

  • May 5, 2001

New series compares index industry sector weights with sales and earnings contributions.

May 05 2001

Tech Watch…..Strong Bounce In April

  • May 5, 2001

Tech stocks came roaring back in April (Info Tech sector up 22%), but don’t expect another parabolic rise!

Mar 05 2001

Tech Stocks Approaching "Normal" Valuations

  • Mar 5, 2001

S&P 500 tech weighting has plunged 43% from February 2000’s peak of 34%. Now at 19%, but expect it may have further to fall in 2001.

Feb 05 2001

Tech Stocks: Valuation Considerations Now

  • Feb 5, 2001

The underlying decline in valuations and tech stock weightings in the cap weighted market indices probably has further to go in 2001.

Jan 04 2001

S&P Technology Weighting Falling

  • Jan 4, 2001

S&P Technology Weighting has fallen to about 21.9% from nearly 35% in February. Expect it to fall to 20% or below (recession?) within the next year.

Jan 04 2001

Large Cap Versus Small Cap: Inside The S&P 500

  • Jan 4, 2001

Poor performance by Large cap technology issues had a very negative impact on S&P 500 cap weighted performers in 2000.

Dec 05 2000

Technology: What’s The Downside?

  • Dec 5, 2000

November was Tech nightmare but we think about two-thirds of decline is behind us.

Nov 04 2000

Technology: What’s The Downside?

  • Nov 4, 2000

Not even the mighty techs are immune to saturation, overcapacity, cyclicality, and fierce competition.

Jan 07 2000

1999 Performance: Big Caps Versus Small Caps

  • Jan 7, 2000

Small cap performance actually nosed out Big Cap +19.6 for Russell 2000 and +19.5% for S&P 500 (price only). Who would have believed it?

Nov 04 1999

The Dow Jones Industrial Index...Before and After

  • Nov 4, 1999

Dow Jones gets a Tech infusion. Still not up to S&P 500 Tech weight.

Oct 05 1999

Beating The S&P 500...Q3 Update

  • Oct 5, 1999

Large Cap and Growth was where you needed to be in the first nine months of 1999.

Apr 04 1999

The Dichotomy Continues...Big Cap Versus Small Cap

  • Apr 4, 1999

Q1 1999 following the same market script of 1995-1998, with big cap stocks, especially Nifty Fifty types, dominating smaller companies in terms of market performance.

Aug 05 1998

Small Caps Relatively Cheap, But….

  • Aug 5, 1998

Small caps cheap relative to big caps, but neither is cheap on absolute basis...Unweighted to weighted P/E comparison at record discount.

Apr 05 1997

DJIA Economic Sector Weightings…A Different Perspective

  • Apr 5, 1997

The four March changes in DJIA components shifted sector weightings for the index, most significantly in Energy, Financial, Healthcare and Technology.

Mar 05 1997

A Sector Dissection of the S&P 500

  • Mar 5, 1997

Jim Floyd’s breakdown of eleven broad sectors within the S&P 500. The S&P 500 experienced 24 component stock changes during 1996. New component additions were not balanced within the sectors by the stock deletions.

Nov 05 1995

The Underowned and Overowned

  • Nov 5, 1995

Each quarter, Barron’s publishes an industry and sector breakdown of institutional holdings, as tabulated by Indata. This is the first time we have published this work, but we have been using it as a factor in our Sector Selection Scores.