Bloomberg Intelligence's Equity Market Minute 10/27/2023

Gina Martin Adams discusses the unusually high dispersion among S&P 500 sectors, noting that sectors are not following traditional defensive strategies during the current market correction. Historical trends show that dispersion typically decreases post-recession, but recent patterns suggest a shift in sector relationships. The current market correction reveals atypical sector performances, with utilities underperforming, which is unusual for low beta sectors. This analysis suggests potential for portfolio alpha through sector selection.

What is the current state of S&P 500 sector dispersion according to Gina Martin Adams?

• It is following traditional patterns.

• It is lower than usual.

• It is abnormally high.

• It is at normal levels.

How does sector dispersion typically behave in a recovery phase after a recession?

• It becomes unpredictable.

• It falls materially.

• It remains unchanged.

• It increases significantly.

What does the post-pandemic recovery period suggest about sector relationships?

• They are becoming more stable.

• They are changing materially.

• They are following historical patterns.

• They are less significant.

Which sector has underperformed during the recent market correction?

• Healthcare

• Financials

• Technology

• Utilities

What is unusual about the performance of low beta sectors like utilities during the correction?

• They have shown no change.

• They have underperformed the S&P 500.

• They have performed as expected.

• They have outperformed the S&P 500.