Imagine that 5 years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The answer: $18,542 for an annualized real return of 12.41%. This article also provides the answers to S&P 500 returns over the last 10, 15, 20 and 30 years.
Read More »Is Boomer Retirement Still Weighing Down U.S. Equity Markets?
Based on the strong historical relationship between the age distribution of the U.S. population and stock market performance that has prevailed since the mid-1950s the upcoming waves of retirement of the baby boom generation born between 1946 and 1964 could push down U.S. equity markets. Why? Because, as boomers reach retirement age, they are likely to shift from buying stocks to selling them to finance retirement, and this massive sell-off could depress equity values. There appears to have been a breakup in that relationship of late, however, so what does that suggest for the timing and magnitude of any correction in the near future?
Read More »Here’s What Historically Happens to Stocks When Bull Markets End
Is the bull market about to come to an end? If last year ends up being the top of this bull market, what does history say could happen to stocks this year?
Read More »This Simple Indicator Suggests S&P 500 Still Far From A Bubble (+2K Views)
...2017 provided many good times [but,] for worriers, the low volatility and steady gains of last year signal bad times are likely in 2018...[and] they have a point. It’s true that good times can’t last forever. [That being said,] it’s also true that we can spot when the good times have gone too far with this simple indicator.
Read More »Get Out Of Stocks & Buy Silver – Here’s Why (+2K Views)
If wealth preservation investors get out of their stocks and buy silver, they are likely to avoid the most massive wealth destruction in the next few years. Let me explain.
Read More »The Types, Purpose & Use Of Stock Market Indices (+2K Views)
There are over 100,000 publicly traded companies in the world to choose from. Luckily, the use of a stock market index can help define a particular market, as well as track its performance in a way that is easy to reference.
Read More »Should You Invest In Index Funds? Warren Buffett Thinks So
9 years ago, Warren Buffett made a $500,000 bet that a simple index fund would outperform an actively managed hedge fund run by expert investors and it did for one or more of the 3 reasons outlined in this insightful article.
Read More »All-Time Stock Market Highs Are Usually Followed By All-Time… (+2K Views)
Momentum is one of the most misunderstood concepts in the investment world but few people grasp how much it impacts the markets - in both directions.
Read More »Three Stock Market Warning Signals to Look Out For
The stock market does not turn on a dime... at least historically that's been the case. There was always a distinctive topping process going on before the bear finally struck. In every case you can look back and detect the same pattern: a marked deterioration of market internals and of interest rate based indicators before any crash so, if history is our guide, we should not expect this time to be different. So, what should we look for?
Read More »The Most Irrational Chart In the World – Take a Look (+2K Views)
As earnings fall, and particularly as earnings expectations fall one would expect stock prices to fall but, as we see, earnings are falling and stock values are rising.
Read More »