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Average Monthly Dispersion of S&P 500 Returns

By January 16, 2014No Comments

Ave-monthly-dispersion-SP-500

 

The average dispersion between S&P 500® stocks over the twelve months of the year was just below 5%, which is the lowest value across the 23-year data.

In such circumstances, the relative value of active management in the equity markets is constrained.  Simply put, accurate bets deliver less alpha.