http://seekingdelta.wordpress.com
As an investor with contrarian tendencies I am always scanning sectors and stocks that may have underperformed in the past looking for solid values. With this in mind I present the best and worst of the S&P 500 from 2010.
First let us examine sector performance. MarketWatch has an article up from earlier in the month that suggests a momentum strategy for playing S&P 500 sectors. It works like this; buy th
e top three sectors from the prior year and hold for one year. The next year do the same. Since 1990 this strategy would have returned an average of 10.3% versus 8.6% for the entire S&P 500 index. See table to the right. For those momentum traders, this may be a strategy worth considering. As someone with a longer-term outlook than one year I prefer to look at the under-performing sectors for value. See the following table for the price performance of all ten S&P 500 sectors in 2010. Those shaded in green outperformed the total index and those shaded red underperformed the total index.
Now we shall take a look at some individual names. The first table is the top 20 price performance companies in the S&P 500 from 2010 and the second table is the bottom 20. For 2010 price performance on all 500 S&P 500 constituents see the following excel file.
THE TOP TWENTY
THE BOTTOM TWENTY
For those pursuing a momentum strategy the first list may present opportunity for 2011 while those value/contrarian investors like myself may want to focus on the second list.
Happy New Years!
