Authors

Presenter(s)

William Edward Bronsil, John Richard Coffey, Mary Bliss Stitzel

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Description

In mid-February 2020, the stock market declined sharply due to the COVID-19 pandemic. In late March 2020, many stocks bottomed out and the market started a first stage rebound that ended in August 2020. In this study we selected the top ten stocks (by market value) in the S&P 500 consumer discretionary sector to measure their rate of decline and rebound for the above period of time. Using time trend regressions we take the regression slope coefficients as the rates of growth measure and then develop an uptrend/downtrend growth ratio which acts as a portfolio weight for each of the ten stocks. We then test the following hypotheses: (1) The higher the growth ratio the higher the return for a given stock thru the end of 2020. (2) As a portfolio of stocks with the growth ratio as the principal factor loading, the portfolio return out performs the market return thru 2020. (3) The ten stock portfolio shows persistence in returns throughout 2020.

Publication Date

4-22-2021

Project Designation

Independent Research

Primary Advisor

Tony S. Caporale, Robert D. Dean

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium project, School of Business Administration

United Nations Sustainable Development Goals

Quality Education

Stock Returns in Selected S&P 500 Sectors during the COVID-19 Pandemic

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