Consumer Discretionary was the top-performing group in June, aided by broad strength across the sector. Each of sector’s 19 sub-industries were positive in June, helping to push the equally-weighted index to new 52-week highs.
That strength is even more apparent on a relative basis. When Discretionary was lagging near the end of the year, we were struck by the underlying outperformance within the group. The sector overall was moving to new lows, but the average Discretionary stock had been outperforming the average S&P 500 stock since last May!
Now, Equal Weight Consumer Discretionary is at new 52-week highs when compared to the Equal Weight S&P 500 Index.