S&P 500 IndexUpdated Flat and fragile..! when you look at Inflation adjusted..!
I believe the best bet is betting on the most probable scenario..!
let's look at the 8 companies with the highest market cap :
Obviously, we do not see any increase in Trading value in the past 2 months!
What is an outlier in statistics?
An outlier is an observation that lies an abnormal distance from other values in a random sample from a population. ... Examination of the data for unusual observations that are far removed from the mass of data. These points are often referred to as outliers.
The historical average stock market return is 10%, so March 2020 to February 2021 was an outlier from a statistical point of view!
and less likely to happen again soon!
In the past 3 months, inflation-adjusted market performance is not positive! which means the market did not buy the theory that stocks will perform like other goods in the time of accelerated inflation!
I believe it would be better to say the stock market has already adjusted the stocks' price in the past 17 months!
The S&P 500 Index originally began in 1926 as the "composite index" comprised of only 90 stocks. According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%.
says that the average DJIA return from 1896 is 5.42%
So I believe it is highly unlikely that we see a huge movement like March 2020 to February 2021. But constant money circulation in the market will provide small opportunities that we can take and wait for the next one!
Reference:
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
let's look at the 8 companies with the highest market cap :
Obviously, we do not see any increase in Trading value in the past 2 months!
What is an outlier in statistics?
An outlier is an observation that lies an abnormal distance from other values in a random sample from a population. ... Examination of the data for unusual observations that are far removed from the mass of data. These points are often referred to as outliers.
The historical average stock market return is 10%, so March 2020 to February 2021 was an outlier from a statistical point of view!
and less likely to happen again soon!
In the past 3 months, inflation-adjusted market performance is not positive! which means the market did not buy the theory that stocks will perform like other goods in the time of accelerated inflation!
I believe it would be better to say the stock market has already adjusted the stocks' price in the past 17 months!
The S&P 500 Index originally began in 1926 as the "composite index" comprised of only 90 stocks. According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10%–11%. The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%.
says that the average DJIA return from 1896 is 5.42%
So I believe it is highly unlikely that we see a huge movement like March 2020 to February 2021. But constant money circulation in the market will provide small opportunities that we can take and wait for the next one!
Reference:
https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp
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Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.