Market Beat: A look back at the last decade
The last decade was a very good one for stocks. After the housing bubble burst, the S&P 500 fell 57.7% from its high in October 2007 until it bottomed out in March of 2009. The low point was hit on March 9, 2009, when the S&P 500 closed at 676.53.
Over the last decade, from 2010 through 2019, the S&P 500 index returned 248.20% over 10 years. This has been one of the longest running bull markets in history.
Stocks are classified using GICS, or the Global Industry Classification System. The S&P 500 is broken down into 11 different sectors. If we take a look at how the different sectors performed over the decade, only two of them outperformed the broad market.
The best performing sector was Consumer Cyclical. The Consumer Cyclical ETF, XLY, returned 308.70% over the decade and the best performing stock in that sector was ULTA, Ulta Beauty, with a return of 1,294.00%. Amazon, AMZN, was a close second with a 1,195.72% return.
The second best performing sector was Technology, XLK, the Technology ETF had a return of 282.70%. Broadcom, AVGO, was the best performing stock with a 1,968.99% gain.
Health care was in third place. XLV, the Health Care ETF had a 222.00% gain and the best performing stock was Abiomed, ABMD with a 1,958.99% gain.
Industrials were fourth, XLI, the Industrials ETF posted a gain of 190.70% and was led by TDG, Transdigm Group with a whopping gain of 2,099.01%.
Financial Services were next. XLF, the Financial Services ETF jumped by 158.60% and was led by MKTX, Market Axess Holdings, Inc with a gain of 2,974.91%.
Consumer Defensive stocks were the sixth best, XLP, the Consumer Defensive ETF gained 136.50% and was led by Constellation Brands, STZ with a gain of 1,101.58%.
Next came Real Estate, VNQ had a 105.70% gain led by EXR, Extra Space Storage with a 1,156.42% gain.
Real Estate was followed by Utilities, XLU posted a 103.20% gain and was led by NI, Nisource with a 760.53% increase.
After Utilities came Basic Materials which were up 81.72% led by SHW, Sherwin-Williams with a 946.12% gain.
Communication Services were in 10th place with a gain of 62.61%, and were led by NFLX, Netflix with a jump of 3,650.70%.
The worst performing sector was the Energy Sector which was only up by 4.88%, but was led by VLO, Valero Energy with a 715.38% gain.
Kenneth Roberts is a Truckee-based Registered Investment Advisor. Information is at his blog at http://iwcasset.com or 775-657-8065. The mention of securities should not be considered an offer to sell or solicitation to buy investments mentioned. Consult your investment professional to understand the risks and/or how the purchase or sale of these investments may be implemented to meet your investment goals. Past performance is no guarantee of future results.
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