AllMarket Outlook
logoArgusApril 09, 2021

Daily Spotlight: Leaders & Laggards in 1Q21

Market Outlook
Bullish - Short term
Summary

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.

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