Last Week's Market Rout In Sector-Beta Perspective

Tyler Durden's picture

While it is true that following an epically volatile week , the S&P closed down only 2.2% (down 11% MTD and 6% YTD), the traditionally homogeneous distribution in domestic and global beta is starting to get unhinged. Stated otherwise, if one were to gauge by the S&P alone, one would massively underestimate the divergence between different sectors and countries. Therefore, we have summarized last week's performance in just two charts, which show the substantial dispersion in performance, and just how much more painful the week has been for those long financials and/or Korea. As central planners briefly lost control of the markets, is relatively value, gasp, coming back, if only for a short time?

And a bonus chart. Yes, you can't eat gold... but what if you gave it enough fertilizer? Gold and Fertilizer stocks were the best subsector by a mile in the past week.

A trend is emerging: when the world is coming to an end, buying end of the world stocks is probably a good idea.