Canadian Equity Sector Performance – Insights for Future Performance

I have analyzed total returns for 1 year, year to date and 1 month.

Golds continue to be the best performing group outperforming all others for 1 year, year to date and 1 month.

Energy is the worst performing group for both the last year and year to date. However over the last month it has sharply outperformed the benchmark TSX Composite.

The Utility sector continues to outperform the TSX Composite on a 1 year, year to date and 1 month basis.

While the Industrials outperformed the TSX on a 1 year basis, they have under performed on a year to date and 1 month basis.

The Telcos – namely BCE, Telus and Rogers, have outperformed on a 1 year and year to date basis, but under performed on a 1 month basis.

The Grocers – Loblaw, Metro and Empire outperformed the TSX on a 1 year and year to date basis, but have not kept up to the TSX on a 1 month basis.

Lastly both the Reits and Financials outperformed the TSX on a 1 year basis, but have sharply under performed the TSX on both a year to date and 1 month basis.

Conclusion

Energy stocks are in the process of bottoming after the massive selloff.

Utility stocks continue to perform well and with their strong dividends they tend to outperform in a recession.

Golds are expected to continue their strong run as long as interest rates remain low.

Both Financials and Reits are suffering in this recession and this is likely to continue until signs of the recession ending are more evident.

There is some modest profit taking in some of the grocers over the last month after their strong performance. However they remain core holdings especially in a recession.

The telcos are similar to the grocers in that they are defensive in nature and will continue to perform well in a recessionary environment.

Industrials are quite cyclical in nature and are expected to perform better when this current recession ends.

 

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