How 2015's results compare to market and sector trends
Well into the holiday season, the time has come to reflect on 2015's results. This past year challenged investors as the seventh year of the bull market experienced its fair share of ups and downs. Here are a few of 2015's more recent headlines:
- The Federal Reserve raised interest rates
- The U.S. job market is nearing full employment (unemployment at 5%)
- Oil prices remain low, below $40 a barrel
- U.S. inflation is hovering just above zero
As for the stock market, mild growth turned to substantial losses as international concerns struck the market in August. These losses were recovered in a substantial run that lasted from the end of September to the beginning of November. The benchmark S&P 500 now sits at a year-to-date (YTD) loss of 2.6%. Smaller stocks, as evidenced by the Russell 2000, are down more on a YTD basis (-7%).
Despite larger gains for smaller stocks, The Bowser Report's 2015 recommendations have fair pretty well. See individual recommendation results below:
|Month||Company||Bowser Category*||% from Rec. Price†|
|January||SIGN IN or SIGN UP to view company names.||1||+64%|
As seen above, eight of 12 recommendations are trading higher than their recommendation price. The average gain for 2015's picks is 20%, which is quite good considering the S&P 500's YTD loss.
The past year's recommendations conduct business within a number of industries including Hotels, Restaurants & Leisure; Communications Equipment; Healthcare Equipment & Supplies; Personal Products and more. Only the Healthcare Equipment & Supplies segment produced multiple recommendations (2) this year.
The following is a breakdown of the sectors that made up 2015's picks:
|Sector||# of Picks|
The top three sectors by number of Bowser picks performed as follows:
- The Consumer Discretionary sector has grown 14% in 2015. Bowser recommendations in this segment are up an average of 15%, in line with the industry. The Bowser picks in this sector are … SIGN IN or SIGN UP to view specific company names.
- The Healthcare sector has grown 4% in 2015. Bowser recommendations in this segment are up an average of 27%, well above the sector average. The Bowser picks in this sector are … SIGN IN or SIGN UP to view specific company names.
- The Information Technology sector has grown 8% in 2015. Bowser recommendations in this segment are up an average of 33%, well above the sector average. The Bowser picks in this sector are … SIGN IN or SIGN UP to view specific company names.
Each of these segments as a whole significantly outperformed the S&P 500 so far in 2015.
Comparisons provide a benchmark for Bowser picks, which by nature of their small size and lower liquidity, generally do not follow overall trends. Lumping picks together within a given category (whether overall or within a specific sector/industry), however, make comparisons more credible.
With 2015 winding down, examining market trends and industry results lend insight into where Bowser picks succeeded. Analysis of past picks will continue as new opportunities are discovered. As the calendars turn over to 2016, 12 more picks are headed subscribers' way.
Here's to sending off a successful 2015 and welcoming a new year filled with opportunity and profits.
*Categories frown December 2015 newsletter
†Prices as of December 18, 2015 close
**Price when recommended to sell
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Nice job Bowser. You continue to make solid picks. That is why I re-upped for 2 more years. Most of the winners I had and continue to hold.