Economics, Info-Graphs

Energy Industry Group Has Positive Performance YTD In Both EM & DM

Energy Industry Group Has Positive Performance YTD In Both EM & DM by Eric Bush, CFA – Gavekal Capital Blog

There hasn’t been very many places to hide in the equity market in 2016. The median developed market (DM) stock is down 2.98% YTD and the median emerging market (EM) stock is down 2.05% YTD, in USD, respectively. In fact, only the energy industry group has had positive performance in both the EM (5.78%) and DM (0.42%). Overall, out of 48 combined DM and EM industry groups, only 11 have had positive performance so far this year. The single worst performing industry group has been DM banks, where are down over 14% YTD. EM commercial & professional services is a close second as this industry group has fallen by over 13%. By far, the two best performing industry groups have been in EM. EM energy is up nearly 6% YTD and EM materials is nearly 5% higher. The best performing DM industry groups have been utilities (2.8%) and real estate (2.28%).

Energy Industry Group Has Positive Performance YTD

Energy Industry

If we zero in on just the United States, nine out of the 24 industry groups have had positive performance YTD. Defensive industry groups have most obviously lead as telecom services (10.4%) and utilities (7.04%) have outperformed all other industry groups by at least 2x. Pharma, biotech and life sciences (-13.2%) and banks (-13.12%) are the worst performing industry groups in the US thus far in 2016.

Energy Industry