Was There Any Hope for Your Portfolio this Month?

May was a difficult month for almost every sector. The markets were beaten up again and again. However, is there a shining light somewhere?

Above you see heat map of every invest-able stock in the US market that has a close > 0, total yearly revenue > 0, and a trading volume value over $500,000 sorted by sector. Though there are some sectors that didn’t do as bad as the rest(Banks and Utilities) virtually every sector lost money over this past month. Remember, that we have it set to where all of the dark red cells are companies that lost 10% or more over the past month, and the dark green are companies that have made 10% or more over the past month.

Even though there is a lot of red, there is still a chance that a certain type of stock did well over the past month – value investments, large caps, small caps, etc. So let’s go ahead and test this theory and see if we can find what we should have invested in, and maybe what we should be investing in over the next few months.

I went ahead and sorted our results by market cap, and though there isn’t a high concentration of green in any particular area, we can see a high concentration of deep red in the micro-cap area. If your portfolio was only invested in companies with a market cap up to 253.6m you would have lost 9.316% this past month, while mega caps 17.4b+ only lost 2% in the same time period.

Here I sorted the heat map by value score – our proprietary value investment score that uses 9 different factors to establish the value of each company. I also sized each stock by the return over the past month to further show how drastic the losses and gains were for specific companies over this period of time. What’s odd is that typically high value stocks do very well overall when compared to low value, but in this case they seem to have roughly the same return over the past month(-3%)

So value stocks didn’t work, how about growth stocks?

Nope, we are running into the exact same problem when ranking companies by their change in revenue over the past year. Actually, the results are almost the exact same where the highest and lowest category returned roughly the same over the past month (-5%).

Now there are plenty more tests I can run; however, it seems after these short preliminary tests that there isn’t an easy way to isolate the winners this past month to give you a response of what you should have been invested in, and what you should invest in throughout the summer.

About Aaron G

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