The economy of US expanded at an annualised rate of around 3.3% during the third quarter of the year 2017 that is above opening of 3% and higher than market anticipations of roughly 3.2%. The general image of growth of economy remains similar even though upward revisions for different fixed investment of non-residential kind, state as well as regional expenditure along with private inventory investment. In essence, growth rate of GDP in particularly the United States stated an average of around 3.22% from the period 1947 to 2017, arriving at an all time high of around 16.9% during 1950.
The nominal GDP of USA during the year 2015 is recorded to be $ 18.21 trillion up from $17.428 trillion in 2014, while the real GDP is registered to be $16.472 trillion, up from 16.013 trillion in 2015. However, the growth rate of GDP is registered to be 2.9%. Thus, it can be observed from the above mentioned figure that the figure for nominal GDP as well as real GDP improved as compared to the year ago period. Similarly, the growth rate of GDP also enhanced from 2.6% in 2014 to 2.9% in 2015. Reports reveal that the transpacific agreement (TPP) as well as the Iran Deal is said to have exerted immense impact on the economic growth rate of the nation.
Trans-Pacific Partnership (TPP) is necessarily a trade deal between Australia, Malaysia, Canada, New Zealand, Singapore, Brunei, Peru, Japan, Mexico and Vietnam. In essence, 12 nations that border the entire Pacific Ocean entered into the agreement of TPP, reflecting nearly 40% of the economic output of the world. As such, this pact intended to deepen the economic tie between these countries, ripping the tariffs and simultaneously fostering business in order to boost business growth. The member nations expected to promote closer association on diverse economic policies as well as regulation. The agreement was also expected to raise the wages and the level of employment while causing a slight job churning and impose adjustment costs on different workers. This deal also provided investment protection counting as per the customary global laws. Therefore, it can be hereby mentioned that specific features and benefits of TPP would also exert positive impact on the GDP. TPP necessarily reduces tariff as well as non-tariff barriers thereby enhancing comprehensive access to market. Regional approach to commitments of TPP was also expected to facilitate the development of the entire production as well as supply chain, encourage seamless trade, augment efficiency and uphold the aim of creation of employment. The ways of addressing different trade challenges was also expected to exert positive effect on the GDP of the nation. TPP also included novel components that could make certain that economies at different development stages as well as sizes of businesses could benefit from trade. All these factors positively affected the rate of economic growth in the USA during the year 2014. In addition to this, the Iran Nuclear Deal was also thought to have exerted impact on the rate of growth of the economy during the year 2015.
Analysis of different components of GDP and their impact on the same:
The best way to approximate the entire size of the U.S economy is with gross domestic product (GDP). There are critical enumerations of GDP, nominal GDP refers to primary measure and this provides an annualized figure and shows the amount that would be produced during the year in case of the economy continued to operate at the same rate.
The best way of estimating the entire size of the economy is with the gross domestic product (GDP). This enumerates the things produced in the United States, irrespective of whether it was made by the citizens of US and corporations or else foreigners.
Release of the updated statistics replicates information on real GDP. During the period 2012 to the year 2015, the real GDP of the nation enhanced at an average yearly rate of around 2.2%. Essentially, for the period 2015, upward revisions can be seen to diverse state as well as regional government spending along with residential fixed amount of investment. Again, downward revisions can be seen to particularly imports along with an upward revision to mainly PCE were partially offset by downward revision to nation’s exports along with non-residential fixed investments.
The personal consumption expenditure items include goods, durable goods, non-durable goods as well as services. The annual rates for the same were 2.4, 2.9, 2.7 and 2.3 during the respective four quarters, whereas the same was recorded to be 1.9, 3.8, 3.7 and 4.6 through the four different quarters. However, the annual rates of gross private domestic investment was recorded to be 9.9, 1.0, 2.0, -2.3 during the four quarters of 2015, while the same was registered to be -6.6, 11.2, 8.9 and 2.6 during 2014. Again, government consumption expend as well as gross investment was 2.6, 3.2, 1.9, 1.0 through the four quarters in 2015, while it was registered to be -1, 0.1, 2.5,-0.4 in four quarters of 2014.
Consumer Spending: There are four different components of GDP and consumer spending comprises of sub-components of both goods (both durable and non-durable) as well as services. The annual rates for the same were 2.4, 2.9, 2.7 and 2.3 during the respective four quarters, whereas the same was recorded to be 1.9, 3.8, 3.7 and 4.6 through the four different quarters.
Government Spending: Government spending is essentially the second largest element that comprises of national defence expenditure, social security advantages as well as health care. This necessarily involves both states together with municipal budgets. The annual rates government spending was recorded to be 2.6, 3.2, 1.9 and 1.0 through the four quarters of the year 2015. On the other hand, the annual rates for the same was recorded to be -2.8, -.1, 0.1, 2.5, -0.4 through the four quarters of the year 2014.
Business Investment: Reports reveal that business investment happens to be an important component of the gross domestic product (GDP). This primarily includes sectors such as manufacturing, construction as well as real estate segments in addition to intellectual properties.
Net Exports: The fourth element of growth rate of the economy is the net exports. The acceleration in the rate of growth of the GDP of the nation replicated an acceleration of the exports.
Essentially, the increase in real GDP replicates positive contributions from personal consumption expenditure and exports of the nations. However, positive contributions were partially offset by specific negative contributions from mainly private investment on inventory, diverse fixed investment that are both non-residential as well as residential along with state as well as regional government spending. Detailed analysis of the report also replicates the fact that the imports that are necessarily the subtraction in the process of enumeration of the gross domestic product of the nation essentially declined.
Economic Assessment for the year 2016
The nominal GDP of USA was recorded to be 18.625 trillion during the year 2016, up from $18.121 trillion. Again, the real GDP was recorded to be $16.716 trillion as against the year ago figure of $16.716 trillion. However, the rate of growth of GDP declined to 1.5% during the year 2016 as compared to the rate of 1.5% registered during the previous year.
Significant Events affecting the GDP during this period:
The major events that affected the GDP were mainly the presidential race. The presidential elections affect the economy of the entire nation. In case if economy shows upward moving trend, people vote for the same for the same party, whereas if the economy is down the replacement party wins. Thus, uncertainty regarding presidential election exerts influence on the nation that affects the rate of growth of the entire nation.
Analysis of different components of GDP and their impact on the same:
The four different components of the GDP include consumption, investment, government and net exports (that is export deducted from imports). The formula for enumerating different elements of GDP is Y=C+I+G+X. (where, C=consumption, I=investment, G=government, X=net exports). During the year 2016, the GDP of the US necessarily consisted of 69% personal consumption, 16% of government spending, 18% of investment and -3% of net exports.
Consumption Expenditure: Around 70% of production of the United States is mainly for the consumer spending and that stood at $12.82 trillion in 2016.
Business Investment: Investment consists of purchases that corporations make in order to produce diverse consumer goods. Business investment was recorded to be $3.06 trillion during the year 2016. In itself, this refers to 16% of GDP of USA and this was down 1% point since the period of 2015. A decline in level of inventory indicates towards the fact that businesses can sense decrease in demand
Government Spending: The government spending was registered to be $3.27 trillion during the period 2017 and that is 18% of the total GDP. However, it is lower than 19% of what it contributed during the year 2006. Nevertheless, the government was necessarily more at the time when the entire economy was flourishing before the period of recession. Thus, it can be said that the government was necessarily spending comparatively more just before the period of recession. However, it is exactly the time when this government spending should have been spending lower to calm things. Essentially, slower spending can be considered as the outcome of the sequestration that is also timed inadequately. Austerity measures also should not have been utilized at the time when the economy was struggling. Reports reveal that the federal government spent nearly $1.23 trillion during the period 2016 that was almost 60% of outlays on military. Again, state as well as regional government also increased to nearly 11%.
Net Exports: Generally, imports as well as exports are said to have opposite effects on the overall GDP of the nation. Essentially, exports add to the gross domestic product (GDP) and imports deduct. This is because America imports huge amount of petroleum, regardless of gains in domestic shale oil production. Basically, economy of the US is mainly founded on services that are difficult to export. The U.S economy is founded on services that are difficult to export. During the year 2016, import subtracted around $2.74 trillion, whilst exports added roughly $2.21 trillion. Consequently, international trade subtracted $521 billion from the nation’s GDP.
|
Component |
Amount (trillions) |
Percent |
|
Personal Consumption |
$12.82 |
69% |
|
Goods |
$4.12 |
22% |
|
Durable Goods |
$1.41 |
8% |
|
Non-durable Goods |
$2.71 |
15% |
|
Services |
$8.70 |
47% |
|
Business Investment |
$3.06 |
16% |
|
Fixed |
$3.02 |
16% |
|
Non-Residential |
$2.32 |
12% |
|
Commercial |
$0.52 |
3% |
|
Capital Goods |
$1.04 |
6% |
|
Intellectual (Software) |
$0.76 |
4% |
|
Residential |
$0.71 |
4% |
|
Change in Inventories |
$0.04 |
0% |
|
Net Exports |
($0.52) |
(3%) |
|
Exports |
$2.21 |
12% |
|
Imports |
$2.74 |
15% |
|
Government |
$3.27 |
18% |
|
Federal |
$1.23 |
7% |
|
Defence |
$0.73 |
4% |
|
State and Local |
$2.04 |
11% |
|
TOTAL GDP |
$18.62 |
100% |
Economic Assessment for the year 2017
The real gross domestic product of nation enhanced 3.1% at an annual rate during the second quarter of the year 2017, as per the third approximations of the national income (NI) as well as product accounts. Essentially, the third approximation of particularly growth of real GDP was primarily revised upward by nearly 0.1% from the second approximation of roughly 3%. This also replicated an upward adjustment to inventory investment.
The prices of mainly goods as well as services bought by the residents of the nation as enumerated by the GDP purchase price index enhanced 0.9% during the 2nd quarter after an enhancement of 2.6% in the 1st quarter. In itself the energy prices declined while the prices of food enhanced more during the 2nd quarter as compared to the 1st quarter. Barring food as well as energy, the prices necessarily enhanced around 1.3%. In particular, real disposable personal earning enhanced around 3.3% during the 2nd quarter and real domestic earning enhanced around 2.9%. Again, corporate gains from the present level of production augmented $14.4 billion.
Analysis of the reports on economic growth replicates the fact that increase in real rate of growth of GDP mainly represented an improvement in investment on inventory, an acceleration in the overall consumer spending, a decline in the imports and an increase in federal government expenses. Essentially, these movements were partially offset by a decline in both residential fixed investment, a decline in the exports as well as a deceleration in both state as well as regional government expenses. Mainly, the acceleration in particularly consumer spending replicated an increase in the expenses for particularly goods that was partially offset by a decline in services.
Detailed analysis of the report also reflects that expenditure on durable goods also increased, representing contributions from diverse sub components. Expenditure for mainly non-durable goods also accelerated mainly reflecting decrease in other framework. Again, deceleration in export reflected a decline in exports of goods that was again partially offset by acceleration in exports of service. Further, deceleration in imports also represented deceleration in exports of both goods as well as services. Moreover, improvement in the federal government expenditure represented an increase in the national defence expends that was partially offset by a greater decline in nondefense expenditure. Further, decrease in both state as well as regional government expenditure represented a decline in gross investment primarily owing to a larger decline in structures that was partially offset by an increase in expenditure on consumption.
Effect of employment on consumption and investment
Unemployment in particularly the United States illustrates about both the causes as well as dimensions of unemployment in the US.
Table Below showing the data on unemployment in USA on monthly basis
Unemployment is necessarily referred to as a circumstance in which an employed person is laid off, either quits or is terminated from their work and is searching for jobs. The rate of unemployment mainly falls during the periods of economic prosperity and increases during periods of recessions, generating immense pressure on particularly public finances since revenue from tax decreases as well as cost on net social safety enhances. There exists a negative association between alterations in the rate of growth of real GDP and the rate of unemployment over a certain extended time period. During the short run, the association between rate of economic growth and the rate of unemployment might be very loose.
Chart below reflects annualised rate of unemployment
The annualised rate for unemployment in USA is recorded to be 6.2% during the year 2014, 5.3% during the year 2015 and 4.9% during the year 2017. The decrease in rate of unemployment during the period 2014 to 2016 reflects acceleration in the rate of growth of economy, thereby positively affects both the consumption as well as investment of the nation.
Analysis of Wage Growth and Inflation and their impact on GDP (2015, 2016 and 2017)
As the unemployment rate is decreasing throughout the three year period, the wage rate is picking up. This is a sign that the job market of the economy is tightening adequately to compel corporations to make higher payments to attract as well as retain employees. However, macroeconomic theory put forward the fact that diverse macroeconomic impact of minimum wage enhancements on GDP is uncertain. Essentially, minimum wage enhances costs of labour as well as prices of output, lessen profits of firm and lead to be undesirable employment as well as hour impacts and this might lead to reduction in gross domestic product. Nevertheless, in case if minimum level of wage increases the level of income of low skilled workers then these workforce tend to have greater marginal propensity to necessarily consume specifically an additional dollar of earning than corporation owners or else low skilled workforce who might lose their jobs, Thus, increase in minimum wage might possibly lead to increase in the gross domestic product.
Inflation:
The present rate of inflation for the nation United States is nearly 2% for the period of 12 months ending in October 2017as declared by the US labour Department. The average rate of inflation for the year 2016 was 1.3, 0.1 for the year 2015 and 1.6 for the year 2014.
As rightly indicated by (), inflation as well as GDP essentially are interdependent on one another and in fact it provides an alteration in the economy. Inflation refers to the enhancing rate of products or else decreasing value of money Therefore, inflation will enhance the overall cost of diverse production factors, technological factors, diverse raw materials as well as labour and many others. Augmenting product costs however leads to inadequate demand as well as sale. Again, abandoned stock that indicates towards inadequate profit that again directs the way towards decrease in level of production. Inflation however can get controlled by means of monetary policy and decrease in private investment into particularly nation’s production and subsequently direct the way towards decrease in GDP. Apart from this, inflation also lead to inadequate inflow of cash from different foreign nations and this consequently can negatively affect gross domestic product. Inflation will lessen the value of money that can lower the value of money adversely.
Government section: Discussion on regulatory as well as fiscal transformations
The government has several instruments to prevent both recession as well as inflation. In essence, the elected government officials possess several tools for shaping as well as executing fiscal strategies. In the beginning, the government uses three large expenditures that mainly include expenditure on social security benefits, spending on military activities on addition to medicare. This is the cause why the healthcare unit has become such a large part of the economy of the US. Essentially, majority portion of the revenue of the revenue of the government necessarily is derived from the income taxes on the income earned. This is significant for the government to decide how they spend the same. The president initiates the budgetary process every years, however, only the Congress has the authority or the power to spend. For instance, the Economic Stimulus Package of the President was necessarily his thought, however, it could not be implemented without the sanction of the Congress. Nevertheless, spending is said to be limited. In case when the spending exceeds revenue, then it generates a deficit in the budget. Report shows that the debt figure of US stands at the $20 trillion. This figure reflects that this is necessarily the debt to GDP ratio. Yet another important tool of the government is the trade policy. This necessarily affects the import costs as well as exports by way of regulating different trade contracts with other nations. Particularly, these contracts such as NAFTA intend to lessen the costs of trade and enhance the GDP of US. During the period 1993 and 2015, the US necessarily tripled the total amount of exports to particularly Mexico as well as Canada. The US also undertakes diverse bilateral along with regional trade contracts. However, the largest is the “Transatlantic and Investment partnership with the European Union” and in case if it gets approval, then it is supposed to become largest trade contract in the entire world.
The Congress also generates the Federal Reserve System that is the central bank of the nation. There are mainly two types of monetary policy that includes the expansionary monetary policy as well as the contractionary monetary policy. The fed has several tools of the monetary policy. However, the most popular tools include the fed funds rate. The Federal Open Market Committee regulates and adjusts to the alterations in the rate of interest. In addition to this, it also controls the money banks for regulating the open market operations.
Assessment for the year 2015 (Refer to excel for calculations)
|
S&P 500 |
NASDAQ |
|
|
Total Return |
0.50% |
7.18% |
|
YTM of 10 yr. UTS |
2.24% |
2.24% |
|
Market Premium |
-1.74% |
4.94% |
|
Average Daily Return |
0.002% |
0.029% |
|
Risk Level |
0.98% |
1.06% |
Analysis of the financial performance for the year 2015:
As per findings presented in the above table, it can be hereby mentioned that total return percentage NASDAQ is greater than S&P 500. Market premium refers to the variance between the anticipated return on the market portfolio and particularly the risk free rate. Essentially, this equals the slope of specifically the security market line that is essentially the graphical representation of the capital asset pricing model. The market premium is -1.74% for the S&P 500 while it is 4.94% for the NASDFAQ during the year 2015. This implies that market risk premium has the need to be positive and as it has turned negative for the S&P 500 then in that case actions need to be taken for making it positive. In addition to this, the calculation presented in the table above also reflects that the average daily return of NASDAQ is higher than that of the S&P 500, presenting a better financial performance of the NASDAQ. In this case, risk level calculated using the standard deviation is higher for the NASDAQ. Here, the higher risk level is also related to the higher potential levels of return.
Assessment for the year 2016: (Refer to excel for calculations)
|
|
S&P 500 |
NASDAQ |
||
|
Date |
Closing Price |
Return |
Closing Price |
Return |
|
Total Return |
|
11.49% |
|
10.58% |
|
YTM of 10 yr. UTS |
|
2.45% |
|
2.45% |
|
Market Premium |
|
9.04% |
|
8.13% |
|
Average Daily Return |
|
0.046% |
|
0.042% |
|
Risk Level |
|
0.82% |
|
1.00% |
Discussion of the performance for the year 2016:
As per findings presented in the above table, it can be hereby mentioned that total return percentage of S&P 500 is greater than that of NASDAQ. This replicates better financial performance of S&P 500 than that of the NASDAQ during the year 2016. Market premium indicates towards the difference between expected rate of return on particularly market portfolio and risk free rate. Basically, this refers to the slope of specifically the security market line that is in effect the graphical reflection of the capital asset pricing model. The market premium is 9.04% for the S&P 500 while it is 8.13% for the NASDAQ during the year 2016. This implies that market risk premium is positive for both and it is higher for the S&P 500. In addition to this, the calculation presented in the table above also reflects that the average daily return of S&P 500 is higher than that of the NASDAQ, reflecting a better financial performance of the S&P 500. In this case, risk level calculated using the standard deviation is also lower S&P 500 in comparison to that of the NASDAQ. In this case, the lower level of risk implies lower volatility and stable financial performance.
Economic Assessment for the year 2017: (Refer to excel for calculations)
|
|
S&P 500 |
NASDAQ |
||
|
Date |
Closing Price |
Return |
Closing Price |
Return |
|
Total Return |
|
15.44% |
|
22.61% |
|
YTM of 10 yr. UTS |
|
2.45% |
|
2.45% |
|
Market Premium |
|
12.99% |
|
20.16% |
|
Average Daily Return |
|
0.066% |
|
0.097% |
|
Risk Level |
|
0.42% |
|
0.61% |
Discussion of the performance for the year 2017:
As per findings presented in the above table, it can be hereby mentioned that total return percentage of NASDAQ is greater than that of S&P 500. In essence, this reflects superior financial performance of NASDAQ than that of the S&P 500 during the year 2017. Market premium mainly refers to variation between expected rate of return on market portfolio and risk free rate. In essence, this implies to the slope of particularly the security market line (SML) that is effectively the graphical indication of the capital asset pricing model (CAPM). Fundamentally, the market premium is necessarily 12.99% for the S&P 500 while it is 20.16% for the NASDAQ during the year 2017. This refers to the fact that market risk premium is affirmative for both, however, it is greater for the NASDAQ. Apart from this, the computation presented in the above table also replicates that the average daily return of S&P 500 is lower than that of the NASDAQ, replicating a better financial performance of NASDAQ. In this case, level of risk enumerated using the standard deviation is lower for S&P 500 in comparison to that of the NASDAQ. In this case, the lower level of risk implies lower volatility and stable financial performance for S&P 500. However, the greater level of risk for NASDAQ is also associated to higher level of return.
Annual % total return of each index
|
Weighted Alpha |
Industry Name |
|
-21.9 |
Advertising Marketing Services |
|
9.52 |
Aerospace – Defense |
|
20.69 |
Aerospace – Defense Equipment |
|
-0.44 |
Agriculture Operations |
|
6.7 |
Agriculture Products |
|
-3.3 |
Appliances – Household |
|
4.9 |
Auction Valuation Services |
|
12.54 |
Audio & Video Products |
|
10.6 |
Auto – Domestic |
|
33.66 |
Auto – Foreign |
|
23.44 |
Auto – Truck Original Parts |
|
2.76 |
Auto – Truck Replacement Parts |
|
22.74 |
Banks – Foreign |
|
18.99 |
Banks – Major Regional |
|
6.41 |
Banks – Midwest |
|
13.3 |
Banks – Northeast |
|
9.59 |
Banks – Southeast |
|
8.76 |
Banks – Southwest |
|
16.18 |
Banks – West |
|
17.79 |
Beverages – Alcohol |
|
-4.48 |
Beverages – Soft |
|
-21.1 |
Biofuels |
|
-75.81 |
Bottom 100 Stocks |
|
-0.36 |
Broadcast – Radio & TV |
|
2.21 |
Building – CMT & CNT & AG |
|
18.41 |
Building – Heavy Construction |
|
6.16 |
Building – Maint & Service |
|
45.42 |
Building – Mobile Homes & RV |
|
44.77 |
Building – Residential & Comm |
|
17.36 |
Building & Construction – Misc |
|
11.27 |
Building Prdcts – Air Heating |
|
20.39 |
Building Prds Retail – Wsale |
|
-38.25 |
Building Products – Ltg FX |
|
27.11 |
Building Products – Wood |
|
17.05 |
Business Information |
|
-14.56 |
Business Office Products |
|
3.41 |
Business Services |
|
30.36 |
Business Software Services |
|
-1.9 |
Cable TV |
|
19.02 |
Chemical – Diversified |
|
19.81 |
Chemical – Plastics |
|
25.38 |
Chemical – Specialty |
|
-23.57 |
Coal |
|
6.19 |
Communication Network Software |
|
16.82 |
Communications Components |
|
7.44 |
Communications Infrastructure |
|
10.21 |
Computer – Integrated Systems |
|
13.5 |
Computer – Mainframe |
|
9.63 |
Computer – Mini |
|
17.22 |
Computer – Networks |
|
22.3 |
Computer – Optical |
|
15.02 |
Computer – Services |
|
17.61 |
Computer – Software |
|
14.05 |
Computer – Storage Devices |
|
9.99 |
Computers – Peripheral Equpt |
|
6.09 |
Conglomerates – Div Operations |
|
11.41 |
Consulting |
|
-16.71 |
Consumer Prdts – Misc Discr |
|
6.64 |
Consumer Prdts – Misc Staple |
|
43.4 |
Consumer Services – Misc |
|
6.4 |
Containers – Metal & Glass |
|
12.26 |
Containers – Paper Products |
|
1.87 |
Cosmetics & Toiletries |
|
10.03 |
Diversified Comm Services |
|
-13.7 |
E&P MLP |
|
28.2 |
Electrical – Manufacturing |
|
22.6 |
Electrical Construction |
|
7.67 |
Electrical Power |
|
0.65 |
Electronic Manufacturing |
|
-1.3 |
Electronic Misc Services |
|
45.59 |
Electronic Test Equipment |
|
16.05 |
Electronics – Connectors |
|
37.84 |
Electronics – Measuring Inst |
|
8.85 |
Electronics – Military |
|
42.7 |
Electronics – Misc Components |
|
-3.94 |
Electronics – Parts Distrib |
|
17.36 |
Electronics – Semiconductors |
|
10.89 |
Electronics Products – Misc |
|
9.36 |
Emerging Markets Integrated |
|
13.78 |
Engineering & R&D Services |
|
19.7 |
Engines – Internal Combustion |
|
-7.63 |
ETFs – Agriculture |
|
-19.88 |
ETFs – Alternative Investments |
|
20.28 |
ETFs – Asia |
|
21.27 |
ETFs – Biotech |
|
1.75 |
ETFs – Bonds |
|
2.5 |
ETFs – Commodities |
|
-0.73 |
ETFs – Commodities General |
|
15.28 |
ETFs – Construction |
|
14.77 |
ETFs – Consumer Discretionary |
|
10.95 |
ETFs – Consumer Non-Cyclical |
|
20.13 |
ETFs – Consumer Staples |
|
4.15 |
ETFs – Currency |
|
27.57 |
ETFs – Defense |
|
16.35 |
ETFs – Emerging Markets |
|
7.38 |
ETFs – Energy |
|
22.4 |
ETFs – Environmental |
|
20.99 |
ETFs – Europe |
|
15.22 |
ETFs – Financial Services |
|
-9.98 |
ETFs – Grains |
|
22.65 |
ETFs – Healthcare |
|
29.2 |
ETFs – Hotels & Gambling |
|
7.02 |
ETFs – Income |
|
18.39 |
ETFs – Industrials |
|
16.19 |
ETFs – International |
|
16.79 |
ETFs – Large Cap |
|
16.11 |
ETFs – Managed ETFs |
|
3.89 |
ETFs – Materials |
|
5.08 |
ETFs – Meats |
|
8.88 |
ETFs – Metals |
|
13.08 |
ETFs – Mid Cap |
|
-5.2 |
ETFs – Mixed Asset |
|
0.18 |
ETFs – Natural Resources |
|
1.93 |
ETFs – Non-Taxable Bonds |
|
-4.14 |
ETFs – Power |
|
-4.2 |
ETFs – Precious Metals |
|
6.52 |
ETFs – Real Estate |
|
13.19 |
ETFs – Small Cap |
|
3.14 |
ETFs – Taxable Bonds |
|
32.6 |
ETFs – Technology |
|
-2.58 |
ETFs – Telecommunications |
|
14.02 |
ETFs – Transportation |
|
14.14 |
ETFs – Utilities |
|
7.72 |
Fertilizers |
|
-22.8 |
Fiber Optics |
|
9.85 |
Finance – Consumer Loans |
|
12.61 |
Finance – Investment Brokers |
|
6.1 |
Finance – Investment Funds |
|
14.45 |
Finance – Investment Mgmt |
|
34.3 |
Finance – Leasing Companies |
|
1.06 |
Finance – Misc Services |
|
27.45 |
Finance – Mortgage & Rel Svs |
|
8.92 |
Finance – Savings & Loan |
|
-3.36 |
Finance – SBIC & Commercial |
|
19.34 |
Financial Transaction Services |
|
2.2 |
Food – Confectionery |
|
-30.85 |
Food – Dairy Products |
|
42.22 |
Food – Meat Products |
|
8.59 |
Food – Misc & Diversified |
|
-6.53 |
Food Items – Wholesale |
|
2.32 |
Funeral Services & Related |
|
7.41 |
Furniture |
|
50.05 |
Gaming |
|
7.6 |
Glass Products |
|
11.77 |
Government Services |
|
30.58 |
Hotels & Motels |
|
17.28 |
Indices Composite |
|
21.93 |
Indices Industrials |
|
22.24 |
Indices Nasdaq 100 |
|
16.96 |
Indices S&P 100 |
|
11.7 |
Indices S&P 400 |
|
16.23 |
Indices S&P 500 |
|
10.04 |
Indices S&P 500 Consumer Discret |
|
10.08 |
Indices S&P 500 Consumer Staples |
|
-10.53 |
Indices S&P 500 Energies |
|
21.57 |
Indices S&P 500 Financials |
|
22.39 |
Indices S&P 500 Health Care |
|
20.15 |
Indices S&P 500 Industrials |
|
27.44 |
Indices S&P 500 Information Tech |
|
18.58 |
Indices S&P 500 Materials |
|
7.87 |
Indices S&P 500 Real Estate |
|
4.88 |
Indices S&P 500 Telcomm |
|
15.85 |
Indices S&P 500 Utilities |
|
10.4 |
Indices S&P 600 |
|
13.07 |
Indices Transportations |
|
13.6 |
Indices Utilities |
|
14.95 |
Industrial Controls |
|
20.53 |
Industrial Robotics |
|
11.92 |
Industrial Scientific |
|
17.01 |
Industrial Services |
|
31.12 |
Insurance – Accident & Health |
|
20.18 |
Insurance – Brokers |
|
16.09 |
Insurance – Life |
|
15.45 |
Insurance – Multi Line |
|
6.01 |
Insurance – Proprty & Casualty |
|
5.3 |
International E&P |
|
28 |
Internet – Content |
|
15.47 |
Internet – Services |
|
22.56 |
Internet – Software |
|
28.36 |
Internet Commerce |
|
31.89 |
Internet Services – Delivery |
|
26.15 |
Internet Software Services |
|
20.36 |
IT Services |
|
17.1 |
Large Cap Pharma |
|
40.73 |
Lasers – Systems & Components |
|
22.57 |
Leisure & Recreation Services |
|
19.47 |
Leisure & Recreational Prdcts |
|
40.52 |
Machinery – Construct & Mining |
|
16.5 |
Machinery – Elect Utilities |
|
8.1 |
Machinery – Electrical |
|
21.66 |
Machinery – Farm |
|
19.21 |
Machinery – General Industrial |
|
31.1 |
Machinery – Material Handling |
|
-12.6 |
Machinery – Printing |
|
20.75 |
Machinery – Thermal Processing |
|
33.64 |
Machinery – Tools & Related |
|
-4.56 |
Media Conglomerates |
|
9.14 |
Medical – Biomedical |
|
17.27 |
Medical – Dental Suppliers |
|
18.56 |
Medical – Drugs |
|
25 |
Medical – Generic Drugs |
|
37.52 |
Medical – HMO |
|
-11.32 |
Medical – Hospitals |
|
-16.78 |
Medical – Nursing Homes |
|
9.7 |
Medical – Outpatient & Hm Care |
|
15.56 |
Medical Information Systems |
|
2.99 |
Medical Instruments |
|
14.43 |
Medical Products |
|
13.85 |
Medical Services |
|
9.35 |
Metal Production & Fabrication |
|
13.83 |
Metal Products – Distribution |
|
-18.37 |
Metal Products – Fasteners |
|
-2.09 |
Mining – Gold |
|
48.8 |
Mining – Iron |
|
-4.81 |
Mining – Misc |
|
-5.68 |
Mining – Non Ferrous |
|
-19.23 |
Mining – Silver |
|
25.51 |
Movie & TV Production & Dist |
|
-53.7 |
Nanotechnology |
|
-2.55 |
Office Automation & Equipment |
|
19.57 |
Office Supply & Forms |
|
-23.71 |
Oil – C$ Exploration & Product |
|
-11.1 |
Oil – C$ Integrated |
|
-20.92 |
Oil – Field Services |
|
19.14 |
Oil – International Integrated |
|
-8.5 |
Oil – International Specialty |
|
-4.7 |
Oil – Production & Pipeline |
|
23.89 |
Oil – Refining and Marketing |
|
-20.14 |
Oil – US Exploration & Product |
|
-10.9 |
Oil – US Integrated |
|
-1.42 |
Oil – US Royalty Trusts |
|
-37.88 |
Oil & Gas – Drilling |
|
-11.27 |
Oil Field Machinery & Equip |
|
-18.68 |
Oil Gas Prod Pipeline MLP |
|
1.42 |
Oil Refining & Marketing MLP |
|
17.67 |
Other Alt Energy |
|
15.27 |
Outsourcing |
|
28.3 |
Paint & Related Products |
|
17.04 |
Paper & Related Products |
|
-5.78 |
Pollution Controls |
|
19.25 |
Precious Metals & Jewelry |
|
-4.84 |
Printing – Commercial |
|
8.48 |
Protection – Safety |
|
16.58 |
Publishing – Books |
|
2.81 |
Publishing – Newspapers |
|
20.92 |
Publishing – Periodicals |
|
27.65 |
Real Estate Developers |
|
16.97 |
Real Estate Operations |
|
3.89 |
REIT – Equity Trust Other |
|
6.55 |
REIT – Equity Trust Resident |
|
-10.58 |
REIT – Equity Trust Retail |
|
1.24 |
REIT – Mortgage Trusts |
|
-7.98 |
Retail – Apparel & Shoes |
|
-18.1 |
Retail – Catalog Shopping |
|
51.65 |
Retail – Consumer Electronics |
|
-19.5 |
Retail – Convenience Stores |
|
-2.65 |
Retail – Discount |
|
-15.2 |
Retail – Drug Stores |
|
30.76 |
Retail – Home Furniture |
|
16.64 |
Retail – Jewelry |
|
11.36 |
Retail – Mail Order |
|
-76.2 |
Retail – Major Dept Stores |
|
-18.36 |
Retail – Misc & Diversified |
|
-24.67 |
Retail – Regional Dept Stores |
|
-4.19 |
Retail – Restaurants |
|
-8.49 |
Retail – Supermarket |
|
-14.94 |
Retail – Wholesale Auto Parts |
|
-0.75 |
Retail – Wholesale Computers |
|
22.06 |
Retail – Wsale Auto & Trucks |
|
24.05 |
Rubber & Plastics |
|
-6.85 |
Rubber Tires |
|
11.76 |
Satellite Communication |
|
28.85 |
Schools |
|
32 |
Securities Exchanges |
|
18.37 |
Semi Analog & Mixed |
|
12.35 |
Semi Communications |
|
39.25 |
Semi Discretes |
|
27.1 |
Semi Fab Foundries |
|
63.03 |
Semi General |
|
22.8 |
Semi Graphical |
|
108.1 |
Semi Memory |
|
8.2 |
Semi Power |
|
19.7 |
Semi Pro Logic Devices |
|
9.65 |
Semi Radio Frequency |
|
10 |
Semi-Eqpt Material Services |
|
-22.1 |
Semi-Eqpt PhotoMask |
|
102.4 |
Semi-Eqpt Wafer Companies |
|
46.08 |
Semi-Eqpt Wafer Fabrication |
|
0.22 |
Shoes and Related Apparel |
|
16.17 |
Soap and Cleaning Products |
|
19.81 |
Solar |
|
15.55 |
Staffing |
|
-1.5 |
Steel – Pipe & Tube |
|
1.64 |
Steel – Producers |
|
9.4 |
Steel – Specialty |
|
13.22 |
Technology Services |
|
-4.57 |
Textile – Apparel |
|
10.12 |
Textile – Home Furnishings |
|
5.57 |
Textile – Products |
|
12.71 |
Tobacco |
|
-0.88 |
Tools – Hand Held |
|
23.9 |
Toys & Game & Hobby |
|
13.84 |
Transportation – Air Freight |
|
11.49 |
Transportation – Airline |
|
26.66 |
Transportation – Equip & Lease |
|
16.92 |
Transportation – Rail |
|
23.38 |
Transportation – Services |
|
-11.22 |
Transportation – Ship |
|
37.06 |
Transportation – Truck |
|
31.23 |
Uniform & Related |
|
11.73 |
Utility – Electric Power |
|
7.25 |
Utility – Gas Distribution |
|
14.64 |
Utility – Water Supply |
|
-18.6 |
Waste Removal Svcs |
|
8.36 |
Wire & Cable Products |
|
3.72 |
Wireless Equipment |
|
5.61 |
Wireless National |
|
10.99 |
Wireless Non-US |
|
-9.7 |
Wireline National |
|
54 |
Wireline Non-US |
|
-14.7 |
Wireline Regional |
The weighted alpha can be regarded to be measure of one year rate of growth with stress on the most current price activity. In this case, the positive weighted alpha refers to the fact that the price of the stock is moving further. However, a negative Weighted Alpha refers to the fact that the price of the stock is moving to a lower level. This weighted measure presented above helps in identifying the extent to which a specific stock has increased or decreased over a specific period of time, normally a year. In general, more stress is goven on the current activity by assignment of higher amounts of weights to the ones than the ones to previous movements. Essentially, this hereby helps in understanding a figure for the return that has higher focus on the recent period and can be considered to be more pertinent measure for analysis in the short term. In case if a particular remains up over a specific time period, then in that case it is said to have positively weighted alpha. Again, an unaltered price of the stock also shows a small amount of weighted alpha. However, a stock whose price has decreased over a specific period of time shows negative alpha.
References
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