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Commentary

2016 vs. 2015: A Stock Market Flip-Flop in 5 Charts

Last year's returns were in many ways a mirror image of 2015, writes Morningstar Indexes' Dan Lefkovitz.

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If 2015 was all about U.S. large-growth stocks, a quick look at Morningstar Indexes shows how dramatically the story changed in 2016. In fact, last year turned out to be a mirror image of much of the past five years. And it was also a year with reversals among key global markets.

Party in Fama-French Land
While the overall U.S. market had a good year in 2016, the biggest winners were found toward the lower left-hand corner of the Morningstar Style Box. The US Market Barometer, the heat map version of the style box powered by Morningstar Indexes, shows the biggest gains in small value and mid-value. Stocks like  Parker Hannifin (PH),  M&T Bank Corp (MTB),  United States Steel (X), and  Consol Energy (CNX) soared. Especially given post-election growth expectations, the relative domestic orientation of smaller caps has been a plus.

Dan Lefkovitz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.