Stock Market Performance – Best and Worst Trading Returns
Trading returns provide a better picture of historical stock market returns. The charts in this series show the performance of the stock market in the form of trading index returns. Trading returns give you a much better indication of stock market performance than most other ways of looking at market returns.
Trading returns do not depend on the calendar year; instead, they look at each one-year, three-year, or five-year period, etc., starting from every month anew over the specified historical timeframe.
The graph goes back to 1973 to show you the stock performance for the worst one-year period (the twelve months ending in February 2009 that recorded a return of -43 percent) to the best one-year return for the index (the twelve months ending in June 1983 that recorded a return of 61 percent).
Presidential Elections and Stock Market Performance
Some people feel that presidential elections always mean one scenario. Speaking with market researchers may show you both sides of the story. Every four years, the same question arises: “Is this an election year, what will happen to the stock market?” The table in this article shows the return of the S&P 500 index for each election year since 1928. Looking at that, you will see that among the last 21 election years, there were only 3 years where the S&P 500 index recorded a negative return during an election year. This tells you a lot about presidential elections and stock performance.
Stock Market Maps – A Colorful Way to Display Market Performance
Stock market maps are a fun way to display market performance. A stock market map provides a unique and colorful method to show the performance of stocks, asset classes, sectors, or the entire stock market of a particular country compared to its peers. You will find any of these five market maps useful, as these visual readings make understanding market performance very easy; whether in the U.S. or abroad.
Historical Bear Markets and Stock Market Performance
Each bear market is different, and time will tell how long it will last before a new high market level is reached. Bear markets are defined as a period where the stock market drops by 20 percent or more from its peak to its trough. Statistically, bear markets occur at a rate of about 1 in every 3.5 years and typically last an average of 367 days. Historical market declines include a 48 percent drop in the stock market over 19 months in the 1970s and an 86 percent decline in the stock market over 39 months in the 1930s. This article provides an in-depth look at the statistics of bear markets, how frequently they occur, how long they last, and the speed at which the market generally recovers.
An Overview of S&P 500 Stock Market Performance Since 1973
Navigating a volatile market requires confidence and courage, and not all markets will be as you hope to see. This article contains a table showing you the historical stock market performance since 1973, on an annual basis. Historically, negative stock market returns typically occur in 1 out of every 4 years. There is little consensus on when stocks were first traded. Some see the pivotal event as the founding of the Dutch East India Company in 1602. What we do know is that the American Stock Exchange merged with the National Association of Securities Dealers (NASD) in 1971 to form the National Market System, or NASDAQ. When NASDAQ began trading on February 8, 1971, it became the world’s first electronic securities market, trading over 2,500 financial instruments.
We know
Also, over time, if you persist long enough, you’ll always see the positive years outweigh the negative years.
Past performance does not guarantee future results
The most common thing you see in investment disclosure documents is the statement that “past performance does not guarantee future results.” While this is true, few seem to believe it. Just because a stock or mutual fund has gone up over the past few years doesn’t mean it can’t go down next year. Base your investment decisions on long-term averages, risk, and your goals. Do not use past performance to invest in things that have delivered the highest returns in the past few years. This is not an effective investment approach.
Source: https://www.thebalancemoney.com/stock-market-performance-2388957
Leave a Reply