January 1st, 2016
On the surface, the headline returns for 2015 look boring at worst, with the Dow Jones and the S&P 500 indices staying just above the 0% level, while the Barclays Aggregate Bond index was up a similar 0.6%. Under the hood, 2015 was a very narrow year in regards to stock leadership, with a short list of big winners keeping the indices afloat. Of the ten sectors within the Russell 1000 Value Index, only Healthcare appreciated by more than 1% for the year. During a year where we consistently heard that “valuations were too high,” ironically it was stocks like Amazon and Netflix with +100 PE multiples that posted the biggest gains, while traditional value stocks languished.