Category Archives: S&P 500 & DJIA

Bye Bye Bull Market: Reaction to Coronavirus

The last few weeks have definitely felt like a “where were you when…?” moment as coronavirus fears spread around the world and many people’s day-to-day lives have been disrupted.  Amid the anxiety and disruption, global financial markets nosedived, sending all major equity indices tumbling, VIX® soaring to levels not seen since the financial crisis, and Read more […]

Cushioning the Decline

With the S&P 500 down -14.7% for calendar 2020, and -18.8% since its peak in late February, investors are rightly concerned to identify strategies that might help to mitigate the ongoing decline.  A number of defensive factor indices have performed relatively well in March, but the leader for the year so far is S&P 500 Read more […]

U.S. Equities: Staying the Course

The last few days have been turbulent for financial markets as coronavirus contagion fears took hold.  Global equities fell; the S&P 500®’s 6.6% price return plunge since the end of last week wiped off its year-to-date gains; recent U.S. sector and industry declines mean that nearly all S&P Composite 1500® industries are down month-to-date; and Read more […]

The Most Dangerous Words

The four most dangerous words in investing are “This time it’s different.”  –  Sir John Templeton As investors ponder the ultimate extent of the coronavirus epidemic, this week’s equity market declines are of natural concern to every asset owner.  The obvious question, after near-record point drops in major indices yesterday and today, is how much Read more […]

S&P Composite 1500®: Providing Higher Quality U.S. Equity Exposure

Over the last few years, mega-cap companies have played an increasingly important role in driving U.S. equity market returns. Indeed, the five largest names in the S&P 500® accounted for 16.8% of the index at the end of last year, the highest year-end weight since 1982 and higher than the 16.6% reached at the end Read more […]

Divergence in Sector Returns

After a pullback in the market over the last week, it remains to be seen if U.S. equities will finish the month in the black.  However, as of yesterday’s close, the S&P Composite 1500, which represents over 90% of U.S. equity capitalization, was up 1.21% since the turn of the year as large cap gains Read more […]

What’s Your U.S. View?

Every year, certain trends take centre stage and help to explain market returns. For example, expectations over trade negotiations and Fed policy were useful for explaining market performance in 2019.  Many of these developments often appear obvious with the benefit of hindsight, but identifying the trends and their subsequent impact in advance is far from Read more […]

The Uncommon Average

The US stock market has delivered an average annual return of around 10% since 1926.[1] But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it’s helpful for investors saving for retirement to see the range of outcomes experienced historically. For example, how often Read more […]

S&P Composite 1500®: Measuring Market Trends

The S&P Composite 1500 measures the U.S. equity market by combining three world-renowned benchmarks – the S&P 500®, S&P MidCap 400®, and S&P SmallCap 600® – which together encompass approximately 90% of U.S. equity market capitalization.  With 2019 in the rear-view mirror, it is obvious that last year was extremely positive for U.S. equities:  the Read more […]

2019: A Market Review

With 2019 coming to a close, market participants may use the time to evaluate portfolio performance and to assess what changes (if any) they would like to make based on return expectations and the market outlook.  While the future is uncertain – hindsight really will be 2020 when it comes to evaluating next year’s returns Read more […]