stock market returns

Weekly Update

A Long-Term View of the Stock Market

By

Published January 5, 2024

 

We begin 2024 with a broad overview of the stock market, its cycles, and return averages as presented by the Visual Capitalist. The first chart looks at stock market returns over the past six decades, noting by the orange bars and dots bearish market periods with bullish periods in blue.

The box at the bottom notes that bullish periods tend to be quite long (51 months) punctuated by brief, sharp bearish spikes downward lasting 11 months, on average. (more…)

Weekly Update

The Importance of Avoiding Large Stock Market Losses

By

Published February 3, 2017

timingcube_cartoon020317

During the financial crisis the stock market fell by over -50%. By February 1, 2011, the stock market had recovered about +80% from the market lows. Yet, investors still had not recovered from the losses. In fact, they were still down by more than -15%! Many investors might have wondered: why am I still “underwater”? How can an 80% gain be less than a 50% loss? Chart 1 below sets out the math of this situation.

(more…)