The correction in the US stock market does not mean that it's time for good earnings in the market. Over the past two months, the sector of energy and raw materials - segments that recovered most significantly - by 8% in total - based on AMarkets.
This month energy assets increased by 10%, raw materials - by 9%, the industrial sector - by 7%. During the same period the S & P rose by 5%. The above-mentioned industry was under pressure earlier due to weak demand, slowing China and expectations of a rate hike by the US Federal Reserve. May 21 the broader market index rose to a record in 2135. Then there was a drawdown of 12.4% three months later. In the past, energy, raw materials and industry have played better than the broader market six months after the correction (or bear market).
For this rally, of course, need the support of the broad market. Not enough positive dynamics of 2-3 branches, which, moreover, are too sensitive to macroeconomic risks. Energy stocks are now too expensive, despite the recovery of the market in oil prices against the August lows. In order for the energy sector actually recovered (to 12-month P / E was at X15), in 2016 black gold should be restored to $ 65 per barrel. It is unlikely that this is possible.