The S&P 500 finished down (-3.1%) in February. Including January’s decline, the year-to-date total return is a dismal -8.01% for the benchmark stock index. Like the early stages of other significant market selloffs, there is almost no place to hide. Even bond returns are down -3.0% so far this year (see the chart below).
There is however, at least one unlikely refuge. Of the 11 S&P GICS sectors (Global Industry Classification Standard), the industry that has essentially been left for dead for the past several years is positive. What is it? If you guessed energy, you’d be right. Not only is it positive, but it is up an impressive 27.59% YTD through February 28, 2022.
The worst sector performer so far this year is Consumer Discretionary (-13.28%) as consumer buying power is eroded by record high inflation.
The chart below highlights recent prices, total returns (total return always includes dividends), dividend yields, and trailing and forward-looking P/E’s for several major indices.
| Market Index |
Closing Price 12/31/2021 |
Closing Price 02/28/2022 |
YTD Tot. Return 02/28/2022 |
Yield % |
Trailing Twelve Mo P/E |
Forward Estimate P/E |
| S&P 500 | 4,766 | 4,373 | -8.0% | 1.3% | 24.5x | 20.3x |
| DJIA | 36,338 | 33,892 | -6.5% | 1.8% | 20.6x | 19.4x |
| S&P US Aggregate Bond Index | -3.0% | 2.3% |
*Statistics on S&P 500 index, DJIA index, and S&P US Aggregate Bond index from S&P Dow Jones Indices.
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Disclaimer
This material is provided by Schmitt Wealth Advisers for informational purposes only. Schmitt Wealth Advisers does not provide tax or legal advice, and nothing herein should be construed as such. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Opinions expressed by Schmitt Wealth Advisers are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from publicly available sources (unless otherwise noted) and are believed to be reliable. Schmitt Wealth Advisers, however, cannot guarantee the accuracy or completeness of such information. Past performance may not be indicative of future results.
