Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Some Perspective On The Outsized Gains In Stocks in 2019
Posted Under: Conceptual Investing

 
View from the Observation Deck  
  1. Today's blog post features the total return performance of the S&P 500 Index and its 11 major sectors over three specific time periods. All three periods end on 7/5/19.
  2. As indicated in the table, the last column shows year-to-date (YTD) performance and the total returns are eye-popping. That is why we feel the need to add some perspective to the current climate in the stock market.   
  3. As we often point out, from 1926-2018 (93 years), the S&P 500 Index posted an average annual total return of 9.99%, according to Ibbotson & Associates/Morningstar. Some of the YTD total returns have doubled, and even tripled, that 9.99% historical annual average.  
  4. The all-time closing high for the S&P 500 Index was registered on 7/3/19 at 2,995.82, according to Bloomberg. Two prior all-time closing highs that stood out in 2018 were made on 1/26/18 (2,872.87) and 9/20/18 (2,930.75). They are the start dates for the other two columns in the table.  
  5. Investors need to remember that the S&P 500 Index experienced a correction (decline of 10.00% to 19.99% from the recent peak) following each of those 2018 highs. From 1/26/18-2/8/18, the S&P 500 Index declined in price by 10.16%, according to Bloomberg. From 9/20/18-12/24/18, the index plunged 19.78% in price, nearly falling into bear market territory (20% or more price decline from the recent peak).
  6. Our takeaway is that equity investors should not let the hot start to 2019 dissuade them from adding more capital to the market moving forward. A good percentage of this year's performance helped recoup last year's downside.     
  7. As noted, the current all-time closing high for the index is 2,995.82 (7/3/19). Brian Wesbury, Chief Economist at First Trust Advisors L.P., just raised his 2019 year-end target for the S&P 500 Index from 3,100 to 3,250.  
  8. This chart is for illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index. The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance, while the 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector. 

Download a PDF of this post, please click here.
Posted on Tuesday, July 9, 2019 @ 2:36 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Weekly Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
US Stock Markets Ended July 5, 2019
US Economy and Credit Markets Ended July 5, 2019
A Snapshot Of Growth vs. Value Investing (Small-Caps)
Halftime Report
US Stock Markets Ended June 28, 2019
US Economy and Credit Markets Ended June 28, 2019
A Snapshot of Growth vs. Value Investing
A Snapshot Of S&P 500 Index Stock Buybacks
US Stock Markets Ended June 21, 2019
US Economy and Credit Markets Ended June 21, 2019
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.