By now most people know that the first quarter (Q1) of 2018 was a rough one. As you may have seen, the S&P 500 posted its first down quarter since Q4 of 2015, finishing in the red at -0.76%.
However, the fact that there were multiple broad-based sell-offs in equities during the quarter does not mean that performance dispersion disappeared.
What does that mean? Well, it means that even though the “market was down”, some stuff was up. SO, there was dispersion between the stuff that was up and the stuff that was down.
Let’s look at a few indices.
One of the best performers for the quarter was the MSCI Brazil 25-50 Index, up 10.56%. Not bad especially against the S&P 500 index. Meanwhile, the Alerian MLP Infrastructure Index was among the worst performers at -11.52%.
This is a performance dispersion (best minus worst) of 22.08%.
Riskier assets were among the relative leaders for the quarter – Emerging Markets, Biotech, Technology, Defense, and Growth each ranked in the top 10 performers for the quarter.
Interestingly, Oil (I’ll use the S&P GSCI Crude Oil Index) made its way into the top 10 posting a gain of 8.99%.
Large Value, Consumer Staples, Real Estate, and Energy were among the relative laggards for Q1 2018.
There are always things to invest in. There will always be dispersion. Diversification helps make sure you are always participating.
Keep looking forward,
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