From the desk of Dan Seder
Discretionary stocks have outperformed the S&P 500 Index since the stock market bottomed on 3/23/20. It’s easy to attribute this rally to Amazon’s +22% stake in the market cap-weighted Consumer Discretionary sector. However, we can strip away the Amazon effect by analyzing the equal-weighted Consumer Discretionary ETF (ticker: RCD). RCD’s +12% lead since late March would suggest broad-based strength in the US consumer. You might find it surprising that General Motors (ticker: GM) is up nearly 100% over the same time period!