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Chart shows the weekly return for the S&P 500 so far in 2022. The weeks of March 18, May 27, and June 24 had 6%+ gains.

Hold On To Catch the Upside

Today's Chart of the Day is from S&P Global, and it shows the weekly returns of the S&P 500 year to date. Yes, cumulatively the market is down, but..

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Since 1950, the average economic expansion lasts 67 months. The average recession, though painful, only lasts 11 months.

Recessions are Painful; Expansions are Powerful

This chart comes from the Visual Capitalist. Since 1950, the average economic expansion lasts 67 months. The average recession, though painful, only..

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Chart illustrates the monthly total returns of mid-cap, small-cap, S&P composite 1500, and S&P 500 stocks spanning from December 1994 – December 2020.

Small- and Mid- vs. Large-Cap Stocks

As of today, small- and mid-cap stocks on a year-to-date basis are performing better than their large-cap counterparts by 3% and 2%, respectively...

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One of our clients calls this the “Chiclets Chart” because of its resemblance to that classic brand of candy-coated chewing gum.

The "Chiclets Chart"

One of our clients calls this the “Chiclets Chart” because of its resemblance to that classic brand of candy-coated chewing gum.

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chart shows annual net flows into passive funds (in purple) vs. active funds (in orange), and their dominance for the last 11 years.

Active vs. Passive Funds

Today’s chart from Morningstar shows annual net flows into passive funds (in purple) vs. active funds (in orange), and their dominance for the last..

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chart shows that from 1940 to 2015 life expectancy went up 15 years and the average years spent in retirement went from six to 37.

37 Years of Retirement

Today’s chart from BlackRock shows that from 1940 to 2015 life expectancy went up 15 years and the average years spent in retirement went from six to..

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chart shows that eight companies make up half of the stock market’s 14% decline year to date

Top Heavy = Top Losses

This chart is from today’s Wall Street Journal. Because of their heavy weights in the S&P 500 index, eight companies make up half of the stock..

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chart shows that the overall index is down 18% from all-time highs.

Diversification Saves in Down Markets

The Russell 3000 Index is made up of the largest 2,750 stocks in the United States.

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chart shows income worldwide

Daily Median Income for World

From 2001 to 2017, the daily median income doubled for everyone in the world.

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This chart shows the price for $1 in earnings from all the companies in the S&P 500 index for the last 20 years

Selling Low

The rule of thumb is to buy low and sell high.

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Updated U.S. Persistence Scorecard

Winning is Hard, Staying a Winner is Even Harder

S&P Dow Jones Indices has published their updated U.S. Persistence Scorecard. A mere 2.2% of actively managed U.S. domestic equity funds in the top..

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 top chart shows that over the last 15 years the stock market was the place to be, bottom chart shows real estate performed better over 30 years

Real Estate vs. Stock Market

Past performance is no predictor of future success, but it is interesting to compare the past performance of different investments. These charts show..

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chart shows the level of dividends for all the stocks in the S&P 500

Sale and Dividends

There are two ways to make money in stocks:

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Chart shows risk of large single stock holdings

100% of the Time

I think about this chart often during discussions with clients on having too much exposure to single stocks.

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chart shows that In the past, an average house in the U.S. cost five times the yearly household income (aka our labor). As of November 2021, that ratio was 7.5 times

Real Estate Prices vs. Income

Real estate is unique since humans need a physical place to live and work. Economics says the price of those physical places is constrained by the..

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On Our Minds

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Hold On To Catch the Upside

Today's Chart of the Day is from S&P Global, and it shows the weekly returns of the S&P 500 year to date. Yes, cumulatively the market is down, but if you happen to miss the three 6%+ weekly gains out of the last 26 weeks, your total return for the year could look a whole lot different.

More

Recessions are Painful; Expansions are Powerful

This chart comes from the Visual Capitalist. Since 1950, the average economic expansion lasts 67 months. The average recession, though painful, only lasts 11 months.

More

Small- and Mid- vs. Large-Cap Stocks

As of today, small- and mid-cap stocks on a year-to-date basis are performing better than their large-cap counterparts by 3% and 2%, respectively.

There is an ebb and flow but going all the way back to 1994 small- and mid-cap stocks have outperformed large-cap stocks by an annual 0.66% and 1.49%, respectively. Financial theory supports, and so far this year it is also true, that when you add them to your portfolio they lower your risk due to the additional diversification.

Since this follows our motto of obtaining the “highest returns, for the least amount of risk,” we include small- and mid-cap stocks in all our portfolios.

More

The "Chiclets Chart"

One of our clients calls this the “Chiclets Chart” because of its resemblance to that classic brand of candy-coated chewing gum.

More

Active vs. Passive Funds

Today’s chart from Morningstar shows annual net flows into passive funds (in purple) vs. active funds (in orange), and their dominance for the last 11 years.

More

37 Years of Retirement

Today’s chart from BlackRock shows that from 1940 to 2015 life expectancy went up 15 years and the average years spent in retirement went from six to 37.

More

Top Heavy = Top Losses

This chart is from today’s Wall Street Journal. Because of their heavy weights in the S&P 500 index, eight companies make up half of the stock market’s 14% decline year to date. It is notable that the value index was only down 3%, while the technology-heavy growth indexes are down 25%. As usual, the S&P 500, which includes both, splits the difference.

More

Diversification Saves in Down Markets

The Russell 3000 Index is made up of the largest 2,750 stocks in the United States.

More

Daily Median Income for World

From 2001 to 2017, the daily median income doubled for everyone in the world.

More

Selling Low

The rule of thumb is to buy low and sell high.

More

Winning is Hard, Staying a Winner is Even Harder

 

S&P Dow Jones Indices has published their updated U.S. Persistence Scorecard. A mere 2.2% of actively managed U.S. domestic equity funds in the top quartile for 12 months performance at the end of 2019 stayed ahead of three-quarters of their peers when measured two years later.

More

Real Estate vs. Stock Market

Past performance is no predictor of future success, but it is interesting to compare the past performance of different investments.

These charts show the value of $100 invested in real estate (red) and the stock market (blue.)

The chart above shows that over the last 15 years, the stock market was the place to be.

More

Sale and Dividends

There are two ways to make money in stocks:

More

100% of the Time

I think about this chart often during discussions with clients on having too much exposure to single stocks.

More

Real Estate Prices vs. Income

Real estate is unique since humans need a physical place to live and work. Economics says the price of those physical places is constrained by the cost of the physical labor to build them.

More