Market Data Bank

4Q 2019


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S&P 500 SURGES SHARPLY IN 4Q2019

The Standard & Poor's 500 stock index posted a +9.1% gain in 4Q 2019. That's nearly as much as the average return historically earned in a full one-year period!Stocks returned +1.7% in 3Q2019 after gaining +4.3% and +13.7% in the previous two quarters and losing 13.5% in 4Q2018.


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U.S. STOCKS TROUNCED FOREIGN AGAIN

The S&P 500 gained +73.9%, more than double the return on European stocks, in the five years ended Dec. 31. 2019. The +14.8% average annual return on the S&P 500 was nearly 50% more than the 10% return averaged for 200 years, according to Prof. Jeremy's book, "Stocks for the Long Run."


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ALL SECTORS TURNED IN BIG 2019 GAINS

While your eye may be drawn to the 50.3% return on tech stocks, the bigger story for diversified investors was that the poorest return among the 10 S&P industry indexes in 2019 was the 11.8% on energy industry shares. All of the other industry sectors returned more than 20%!


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INDEXES TRACKING 13 ASSET CLASSES

Notable in this bar chart of 2019 returns of a diverse group of 13 assets is that there was only one loser - agriculture commodities, which suffered a fractional loss of one-third of 1% for the year. The other 12 asset classes showed positive returns. Even asset classes not highly correlated with U.S. stocks gained strongly.


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QUARTER BY QUARTER

The is what a roaring bull market looks like. In looking back 20 quarters, the superlative returns in the last four quarters stand out. While this indicates a reversion to the mean could be in the cards soon, the fundamentals of the economy remained strong as 2020 began.


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CONSENSUS FORECAST

The 60 economists surveyed in early December by The Wall Street Journal expected growth to average +1.8% over the five quarters ahead, which is line with Bureau of Economic Analysis actual quarterly gross domestic product data shown in black. Barring a "black swan" event, the expansion was poised to continue in 2020

Past performance is never a guarantee of your future results. Indices and ETFs representing asset classes are unmanaged and not recommendations. Foreign investing involves currency and political risk and political instability. Bonds offer a fixed rate of return while stocks fluctuate. Investing in emerging markets involves greater risk than investing in more liquid markets with a longer history.

 

 

 

 

 

INDEX OF MARKET DATA BANK

This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by Advisor Products Inc., to provide information on a topic that may be of interest Advisor Products is not affiliated with the named broker-dealer, state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Indexes are unmanaged baskets of securities that are not available for direct investment by investors. Index performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is not a guarantee of future results. All investments involve risk, including loss of principal. ©2017 Advisor Products Inc. All Rights Reserved.

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