Monthly Style Summary to end May 2012

Wednesday 6th June, 2012

With no abatement of the troubling economic news, no clear resolution in sight for Greece, and the increased risk of contagion to other peripheral Euro countries, it is no surprise that markets took fright during May. No country or sector was immune to the slump. From a Style perspective, low Beta continued to deliver, alongside Momentum and Growth. With the exception of Yield, Value remains out of favour.

The accompanying Monthly Style Graphics and the Style Map reveal a remarkably consistent picture, whether looking over one/three months or with/without sector adjustment. Defensive stocks stood out, as did Momentum (essentially low Beta stocks continuing their strong run relative to the rest). Of the 12 Value/Growth sub-Styles monitored here, only Dividend Yield and Forecast Earning Growth broke from the pattern of positive Growth and negative Value. In Asia/Emerging the poor performance of the Foreign Sales factor reflected concerns for the prospects of exporters.