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 implications does the changing relationship between sectors have for investors?

In what way did the performance of low beta sectors like utilities differ from expectations during the market correction?