U.S.-Centric Companies Outperform
Blog of HORAN Capital Advisors | May 09, 2013 02:09PM ET
A recent AlphaNow 150 companies/stocks generated at least 95% of their revenues within the USA and outperformed the S&P 500. On a 2013 year-to-date basis (through May 1), they note, their total return beat the S&P 500 15% vs. 12% and 31% to 21% in the past two years.
Sector Rotation
The report also notes, The three top overweights come in sectors which have all outperformed so far in 2013 (see chart) – financials (+13% overweight), telecom services (+11%) and utilities (+10%). That’s before adding in consumer discretionary (+2% overweight), which is the second best-performing sector as of May 2. Of late, though, much has been said about the potential rotation underway out of these more defensive sectors and into more cyclically oriented ones.
Investors need to be on guard about chasing past returns.
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