Caution Creep: As Earnings Season Kicks Off, Russell 1000(R) Index Underscored a Growing Defensive Posture, Focus on Defensive Sectors
(firmenpresse) - SEATTLE, WA -- (Marketwired) -- 04/11/13 -- The large-cap U.S. equity market as reflected by the Russell 1000® Index of large-cap U.S. stocks gave up ground in the first week of the second quarter. For the second quarter-to-date, the Russell 1000® Index lost (-1.1%), while still showing a positive return of 9.7% year-to-date as of April 5th.
Sectors traditionally viewed as "defensive" by investors had the strongest year-to-date return within the Russell 1000® Index, with Health Care (16.7%), Consumer Staples (14.7%) and Utilities (13.7%) showing the strongest performance as of April 5th. These sectors also performed relatively well in the first week of April, with Utilities (+1.6%), Health Care (+0.6%) and Consumer Staples (-0.6%) showing the strongest sector returns within the Index.
A closer look at the returns, as reflected by , reinforces the defensive posture by investors in this "cautious bull," with defensive-oriented stocks delivering the strongest performance year-to-date. The Russell Stability Indexes are style-based benchmarks, created from existing Russell Indexes, which identify stocks based on sensitivity to economic cycles, credit cycles and market volatility, referred to as stability. The more stable half of the market is called Defensive and the less stable half of the market is called Dynamic.
The Russell 1000® Defensive Index, which identifies and measures more defensive-oriented stocks within the Russell 1000® Index of large-cap U.S. stocks, outperformed both its Dynamic counterpart and the Russell 1000® Index for the first quarter. And the performance difference between Defensive and Dynamic stocks within Index has in fact widened for the year-to-date as of April 5th as compared to where it stood at the end of the first quarter.
"As we return to quarterly earnings season, we continued to measure a creeping defensive posture within a rallying U.S. market as shown by the Russell 1000® Index," said Stephen Wood, Chief Market Strategist at Russell Investments. "A maturing earnings cycle will be a major test for a broad-based market rally that has run hard in 2013. As such, we remain 'guarded' -- but simultaneously 'observant' for opportunities. The undercurrent of this broad market rally, as reflected by the outperformance of the Russell 1000® Defensive Index over the Russell 1000® Dynamic Index for the year-to-date, suggests a patient approach by investors. We expect volatility and correlations, in the face of largely unchanged fundamentals, to present an environment that may favor security selection and a multi-asset approach."
Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.
Opinions expressed by Mr. Wood reflect market performance and observations as of April 5th, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.
Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.
CORP-8391
Image Available:
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 11.04.2013 - 14:26 Uhr
Sprache: Deutsch
News-ID 248249
Anzahl Zeichen: 0
contact information:
Town:
SEATTLE, WA
Kategorie:
Commercial & Investment Banking
Diese Pressemitteilung wurde bisher 248 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Caution Creep: As Earnings Season Kicks Off, Russell 1000(R) Index Underscored a Growing Defensive Posture, Focus on Defensive Sectors"
steht unter der journalistisch-redaktionellen Verantwortung von
Russell Investments (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
