by Bespoke Investment Group
The average stock in the S&P 500 is down 4.61% over the last two days.
We wanted to see how a stock's performance during the 8%+ rally from 8/22 to
8/31 has impacted performance since 8/31. To do this, we broke the S&P 500
into deciles (10 groups of 50 stocks each) based on performance during the
rally, and then calculated the average performance of stocks in each deciles
during the current 2-day selloff.
As shown below, the better a stock performed during the rally, the more it
has gone down during the pullback. The 50 stocks that went up the most from
8/22 to 8/31 are down an average of 6.40% since 8/31. Conversely, the 50 stocks
that went up the least from 8/22 to 8/31 are only down an average of 2.28%.
Investors have clearly been selling their winners over the past two days.
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