North America Sector Performance Since the October Low

North American developed market large-mid stocks (United States and Canada) bottomed simultaneously with other developed markets on 10/12/22, recovering over 10% since then. Also since October, the Bloomberg North American Large-Mid Index has experienced a “golden cross” wherein the 50-day moving average rises above the 200-day moving average. This represents an uptrend which can also been seen in the market’s “higher highs and higher lows” pattern since October. This is also the 28th day the index has been above the 200-day moving average, which typically does not happen in a bear market. Going back to the early 1990s, this 28-day duration of the current price holding above the 200-day performance after being below for more than six months was at the end of secular bear markets in 2003 and 2009.

Here I look at North America performance by sector since the October low to examine the breadth of the recovery. I start by looking at equal-weighted sectors, taking the top 85% of market cap, filtered for the 10% least liquid securities. Performance has been mixed with the traditional value sectors of materials and energy leading and lagging the other sectors, respectively. While oil prices have been muted lately, commodities like gold, which some investors see as an inflation hedge, did quite well in Q4, helping lift the materials sector when looking at both growth and value stocks.

North American Large-Mid Performance by Sector since 10/12/22*

*As of 2/24/23