AllMarket Outlook
logoArgusApril 09, 2021

Daily Spotlight: Leaders & Laggards in 1Q21

Market Outlook
Bullish - Short term

Breadth has been impressive so far this year, and every sector turned in a positive performance in 1Q21 -- though last year's laggards were generally the leaders. Take Energy, for example. The sector fell 37% in 2020 and lagged the market in 2019. This year, Energy is the leading sector, with a gain of 29%. The Financial Services sector also turned things around in 1Q, rebounding from a 4% slide in 2020 with a 15% advance so far in 2021. Other market-beating sectors in 2021 include Industrial (+11%, after underperforming the market last year), Materials (+9%), Real Estate (+8%) and Communication Services (+8%). The turnaround in sector performance hints at a shift in the market toward value investing and away from growth investing. Indeed, the three primary growth sectors -- Technology, Healthcare and Consumer Discretionary -- are barely in the black in 2021. Our sector Over-Weights reflect a blend of growth and value, and include Technology, Healthcare, Industrials, Financial Services and Communication Services.

Subscribe to Yahoo Finance Plus Essential for full access
Exclusive reports, detailed company profiles, and best-in-class trade insights to take your portfolio to the next level
Try it Free