Recent Data: Sectors Driving the S&P500 in the Half of 2024
📶Decoding the S&P 500 (07/01/24): S&P500 is Breaking Historical Trends | What is the Sharpe Ratio Equation? | S&P500 Tracker | Alpha Hedge Performance Review
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MORNING KICKOFF
The S&P 500 is Breaking Historical Trends
From 1980 to 2023, the S&P 500 had never peaked in June, in 2024 was different. Sorry for those who sold in May (Source: Bloomberg).
S&P 500 DATA POINTS
Recent Data: Sectors Driving the S&P500 in the half of 2024
(07/01/2024 Update)
The graph presents the year-to-date percentage change in market cap variation impact across various S&P 500 sectors.
Technology leads with a substantial positive impact of 5.27%, followed by Communication at 1.49% and Financial at 1.19%. In contrast, Materials shows the lowest impact at 0.05%, while Utilities and Consumer Discretionary have marginal positive impacts of 0.15% and 0.27%, respectively.
This data highlights the significant contribution of the Technology sector to the S&P 500's performance, while other sectors have had a lesser impact.
INSIDERS KNOWLEDGE HUB
What is the Sharpe Ratio Equation?
Sharpe Ratio is a key metric for assessing the risk-adjusted return of an investment.
At its core, the Sharpe Ratio is calculated using the following formula:
Sharpe Ratio = (Rf- Ra)/σaWhere:
Ra: Asset Return
This is the actual return earned on the investment over a specified period. It could be annual, monthly, or any other relevant timeframe.
Rf: Risk-Free Rate
The risk-free rate represents the return of an investment with zero risk, typically associated with government bonds. It serves as a benchmark to compare the performance of riskier assets.
σa: Standard Deviation
Standard deviation measures the asset's volatility, indicating how much the asset's return deviates from its average return. Higher standard deviation implies higher risk.
Many investors struggle to gauge whether their returns justify the risks taken. By comparing the asset return against a risk-free rate and adjusting for volatility, the Sharpe Ratio provides clarity.
A higher Sharpe Ratio indicates a better risk-adjusted return, guiding investors to make more informed decisions.
Case Study: Alpha Hedge Portfolio Sharpe Ratio
(Updated in 07/01/2024)
PERFORMANCE SNAPSHOT
S&P 500 Market Cycle Tracker:
(07/01/2024 Update)
As the second half of 2024 begins, US stocks edge higher with the S&P 500 gaining 0.3%.
Tesla TSLA 0.00%↑ surged 6% ahead of its delivery results, while Nvidia NVDA 0.00%↑ bounced back, easing fears.
Analyzing this, the volatility hints at a cautious optimism but underscores the need for strategic market cycle positioning. S&P 500 is in Phase 4 of the Market Cycle.
Alpha Hedge Performance Review
(07/01/2024 Update)
The Alpha Hedge Portfolio experienced a daily increase of 0.1%, contributing to a cumulative yearly performance of +20.4%.
Over the past decade, our subscribers have outperformed the American Market Decoding the S&P 500 Market Cycle.
You too can make investment decisions based on objective data.
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Against facts, there are no arguments. The analysis presented by Dan Castro over the last decade shows that subscribers of the Wall Street Insider Report have consistently outperformed the American market. By decoding the S&P 500 market cycle, the unique and objective approach of this report puts investors back in control of their financial decisions. Based on solid data, you can make informed and strategic decisions. Congratulations on the achieved results! This commitment to objectivity makes all the difference in successful investment management.