- Your article on inter-Sector correlations sheds some light on the causes of our recent results (over 50% spread between under and over valued screens) seen here:
Short Term Results (16 months)
The performance of the screens have been particularly consistent since June 2016 as the graph below shows. The Undervalued have outperformed our Universe by 31% while the Overvalued under performed by 19% for a spread of over 50% in 16 months.
(see site for graphs)
A simple explanation would be value vs growth but this doesn’t hold up as the underlying principal of Corequity analysis is to put a price on growth specific to each company. This is further supported by the recent relative performance of the ETFs SPYG and SPYV, being the Spider ETFs for S&P 500 Growth and Value stocks.
This (the graph) bears no resemblance to the UV/OV screen graph for the same period especially if the same scale is used.