A Spectacular Quarter For U.S. Stocks Just Ended
The first quarter of 2019 ended on Friday with a gain in the Standard & Poor's 500 stock index of 13%, the best quarterly performance since the third quarter of 2009.
Publicly traded shares of large American companies, in decades past, averaged about a 10% total return per year. So, a double-digit gain in a three-month period is extraordinary by historical standards.
The strong performance in stocks occurred despite a long list of worries, including:
- inversion of the yield curve, a bad sign that has preceded every recession in post-War U.S.
- a U.S. trade war with China, the world's second-largest economic power
- signs of a sharp slowdown across Europe and in China
- lower earnings growth forecasts by Wall Street analysts for S&P 500 companies for 2019
No one can predict the future of the stock market or any particular investment with certainty. Just a week ago, the S&P 500 fell by 1.9% in a single day! A key growth investment in a broadly diversified portfolio, the S&P 500 index suffered a 19.8% plunge from September 20th's all-time closing high to the Christmas Eve closing low of 2,351.10. Closing on Friday at 2834.40, the S&P 500 stood just shy of its all-time closing high of 2930.75 on September 20th, 2018.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial or tax advice without consulting a professional about your personal situation. Tax laws are subject to change. Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.
- Is The New Record High In Stocks Irrational?
- Stocks Break New Record; Economic Outlook Clears
- Despite Frights, Can The Expansion Continue?
- Retail Sales Coverage Reflected The Narrow View Of The Media
- Small-Business Optimism Declines But Remains High
- Analysis Of New Employment, Manufacturing & Service Economy Data
- Quarter Ends Well Despite Trade War, Inverted Yield Curve & Political Crisis
- No Recession But A Slower Pace Of Growth
- Fickle Financial Headlines Brighten
- Economy Gets Bad Press Again
- Europe's Growth Problem And Your Portfolio
- Stocks Dropped 2.6% On Friday, As Reality Gap Seemed To Widen
- A Prudent Perspective On Recent Volatility
- A Tale Of Two Economies
- Amid Worries, New Equity Risk Premium Data Explained
- GDP Rose More Than Expected; Stocks Top Record Again
- Slower Growth Confirmed By June Leading Economic Indicators
- Stocks Closed At A Record High; Should You Worry?
- Amid Record Stock Prices, Fed Policy Is A Risk
- Uncle Sam Delivers A Strong Economy
- A Dramatic Pause, As Expansion Breaks Longevity Record
- The Explosion In Real Retail Sales You Never Hear About
- Amid Signs Of Weakness, Fed Reverses Course; Stocks Rally
- Three Stories Affecting Your Wealth This Week
READY TO TAKE THE FIRST STEP?
Schedule your no-charge, no-obligation Introductory Phone Call.