Chart o’ the Day: Why the Market Feels Worse Than It Is

My pal Ari Wald (Oppenheimer Asset Management) has an interesting take on the “feel” of the market versus the objective reality.

While Wald maintains an overall bullish bent, he notes that identifying winners and losers has been more important this year given the trendless nature of the S&P 500. High dispersion and flat indices make for a frustrated investor class, despite our proximity to the all-time highs:

If the alternative is a bearish view, we believe a bullish S&P 500 outlook remains warranted. However, reality is probably somewhere in the middle as stock-level trends vary considerably. At last week’s low, the S&P 500 was down 3.6% from its all-time high of 2134, but the market environment feels worse than this is because the dispersion of performance has widened sharply. For instance, the spread between the best (Health Care, +24%) and worst (Energy, -24%) performing S&P 500 sectors over the last 52 weeks is the widest since February 2010. This is a reason we continue to place greater emphasis on our sector and stock calls than our market one.

Screen Shot 2015-07-06 at 2.23.33 PM

 

Josh here – If you’re a devoted stockpicker, now is finally your time to shine after five years. Try not to f*** it up.

Source:

Inflection Points
Oppenheimer Asset Management – July 6th 2015

Follow Ari on Twitter!

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Intelligent Automation Strategy commented on Nov 27

    … [Trackback]

    […] There you will find 40453 more Information on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  2. bmo bank online commented on Dec 20

    … [Trackback]

    […] There you can find 30788 additional Info to that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  3. USB Microphones commented on Dec 23

    … [Trackback]

    […] There you will find 20159 additional Info on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  4. 파워볼사이트 commented on Dec 28

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  5. replica watches commented on Jan 14

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  6. cheap wigs commented on Jan 15

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  7. Software Testing Services commented on Jan 15

    … [Trackback]

    […] There you will find 71957 additional Information on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]

  8. Digital transformation consultants commented on Jan 16

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2015/07/06/chart-o-the-day-why-the-market-feels-worse-than-it-is/ […]