Market Data Bank

1Q 2018


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CORRECTION, RECOVERY, FRACTIONAL LOSS

The S&P 500 suffered a 10.2% correction in early February before recovering to post a 0.8% loss in the first quarter of 2018. The fractional loss followed a 6.6% gain in the fourth quarter of 2017, 4.5% in the third quarter, 3.1% in the second quarter and 6.1% in the first quarter of 2017. Volatility reappeared after a two-year lull.


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STOCKS NEARLY DOUBLED IN FIVE YEARS

Over the 10 years shown, $1 invested in the S&P 500 grew to $2.48. From the low on March 9, 2009, $1 in stocks grew to $4.72 -- a 372% return! What makes America exceptional among all nations has been unfolding in plain sight for 10 years, but it is always difficult to recognize it the moment it is happening.


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SECTORS SHOW GROWING APPETITE FOR RISK

The technology sector was again the standout in the 12 months ended March 31, 2018. The laggards -- telecom, consumer staples, energy, and utilities -- are considered more defensive. This is a sign of a gradual shift in sentiment toward riskier assets.


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INDEXES TRACKING 13 ASSET CLASSES

The S&P 500 index's total return of 87% in the five years through March 31, 2018, was more than double the 40% return on the S&P global stock index excluding U.S. stocks. For the first time in years, global growth accompanied the long U.S. expansion, boosting returns of a portfolio broadly diversified across the globe.


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APPROACHING THE LONGEST BOOM

At 107-months old, this is the second-longest expansion in modern U.S. history, surpassing the 106-month long expansion of the 1960s, and just 13 months shy of the 120-month boom of the 1990s -- the longest ever. With fundamentals strong, this is likely to become the longest in post-War America.


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FED PLANS INTEREST RATE HIKES

After hiking rates in March, the Fed said three more quarter-point hikes would follow in 2018. Interest rate cycles are slow. The most recent 24 years were marked by falling rates, while rates fell the previous 24 years. A new rising recently began. Rising bond yields often coincided with bull markets in stocks in the past.

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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