November 29, 2013 Leave a comment
The stock market has performed tremendously well thus far in 2013. Overall, the S&P 500 Index (SPY) has risen by +29%. But when examining the composition of this rally, some notable facts quickly rise to the surface. First, such robust stock gains have not been supported by fundamentals at all this year with revenue and earnings both growing only in the low single digits. Perhaps more notably, the performance of the lowest quality companies in the S&P 500 Index has exceeded that of the highest quality companies by a wide margin. In other words, the incredible stock rally witnessed in 2013 has been primary driven not by quality, but instead by the most speculative companies in the market.
Please click on the link to read more of my article on Seeking Alpha.
This post is for information purposes only. There are risks involved with investing including loss of principal. Gerring Wealth Management (GWM) makes no explicit or implicit guarantee with respect to performance or the outcome of any investment or projections made by GWM. There is no guarantee that the goals of the strategies discussed by GWM will be met.