A correction is defined as a decline of 10% from recent market highs. Bear markets are market declines of 20% or more. Equity markets go through plenty of market corrections over the years. But very few of the corrections actually turn into bear markets. The following chart shows that since 1974 there have been many …
I came across the below infographic on US inflation since the 1960s. Last year when inflation started creeping up the Fed said repeatedly it was only “transitory”. Now it has become permanent and they are unable to get it under control. Raising interest rates a little bit is not going to help. With sky high …
Continue reading ‘U.S. Inflation – Past, Present and Future: Infographic’ »
Volatility has returned to the US equity markets with a vengeance. Stocks were flying smooth last year and always seem to go in only one direction. That is no longer the case. Right the start of the year, starts are swinging wildly taking investors on a stomach churning ride. Even professional investors are struggling to …
Continue reading ‘S&P 500 Intra-Year Declines and Total Returns by Year 1980 to 2021’ »
The Fed has planned to raise interest rates this year. The forecast is rates will increase at least three times in the year. In anticipation of rising rates and a multitude of other factors including valuation concerns in certain sectors, US equity markets have turned very volatile this year. With interest rates bound to go …
Continue reading ‘Performance of S&P 500 Index When Interest Rate Rises: Chart’ »
US stocks have performed well during some periods in the past while their overseas peers have outperformed in other periods. For more than 10 years thru September of 2021, US equities have had an excellent run. However this outperformance may not last forever and foreign stocks may take their lead soon. According to an article …
Continue reading ‘U.S. Equity vs. International Equity 5-Year Rolling Returns: Chart’ »