Resources

Market Data Bank

3Q 2015


Click image to enlarge

The stock market suffered its first correction in more than six years 3Q2015. While economic fundamentals driving stock prices remained positive, the market was long overdue for a correction. At its low point in mid-September, stocks had dropped 13.4%.


Click image to enlarge

In the five years that ended September 30, 2015, the S&P 500 total return was 87% with reinvestment of dividends included. Note that periodic setbacks, like the wrenching correction of late August and early September, are just blips over the long term.

 


Click image to enlarge

Among the S&P 500’s 10 sectors for the 12 months ending with 3Q2015, investors gravitated toward companies whose earnings come from American consumers. These companies are less exposed to the economic weakness now widely expected in Asia.


Click image to enlarge

The U.S. economy snapped back from the global financial crisis with more strength than other regions of the world, which drove the outperformance of America’s blue-chip companies. It’s a testament to the independence of the U.S economy and helps bolster the case for American exceptionalism.

 


Click image to enlarge

Outperformance of U.S. stocks seemed frustrating to diversified investors, who own stocks in a broad range of assets classes. But don’t lament not owning more U.S stocks. Being diversified means never performing as well as the best asset class, or as poorly as the worst. It aims for moderation and not extremes.


Click image to enlarge

The red squares show expected earnings on the S&P 500 index based on a October 5 forecast by Wall Street analysts for earnings of $118 per share in 2015 and $130 in 2016. The trajectory of earnings growth is posed to propel stocks higher, unless a crisis or really bad unexpected news sets world progress back.

 

 

Past performance of investments is not a very reliable indicator of future performance. ± Indices and ETFs representing asset classes are unmanaged and not recommendations for any specific investment. Foreign investing involves currency and political risk and foreign-country instability. Bonds offer a fixed rate of return while stocks fluctuate. ¥ Estimated bottom-up S&P 500 earnings per share as of June 25, 2015 was $119.06 for 2014 and $133.74 for 2016. Sources: Yardeni Research, Inc. and Thomson Reuters I/B/E/S survey of consensus estimates. Standard and Poor’s for index price data through July 2, 2015; and actual earnings data through December 31, 2014.

 

 

 

 

 

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.

Navigation Links

Tell a friend

Tell A Friend about the information you found on our website!

Contact Details

15455 Dallas Parkway
Suite 1325

Addison, TX 75001

Phone: 972-980-PLAN

Fax: 972-980-7859

This email address is being protected from spambots. You need JavaScript enabled to view it.

Broker Check

Check the background of this firm and investment professional on FINRA's BrokerCheck.