May 23, 2025
A quick note on factor performance ahead of the long weekend. We hope everyone has a wonderful holiday and that even those (like us) facing inclement weather have something to look forward to amidst friends and family.
We wanted to highlight our Large Cap. Growth vs. Value chart (below). As can be observed Growth stocks have sustained their near-term bullish reversal from early April and now are on the cusp of YTD gains vs. the S&P 500 despite a peak-to-trough correction of around 20% between February and March.
Mag7, Semiconductors, Asset managers and other bullish exposures have participated. We are also impressed with the steady performance of the Industrial sector which which is 8% of the S&P 500 market cap., but more than 15% of the stocks in the index. That kind of broadening in upside participation is constructive along with the top side bullish reversal price action.
Conclusion
We think near-term pullbacks in US equities are likely accumulation opportunities at this point.
Data sourced from FactSet Research Systems Inc.
