This week marked the one year anniversary of hitting the market low with the S&P 500 closing at 2,237. One year later, the S&P closed at 3,910 representing an astounding 77.8% rebound off the bottom when accounting for dividends.
Chris and Jesse reexamine the last twelve months discussing what they respectively gleaned from the wild year that was, and share some thoughts on what may lie ahead over the next year.
See below for the charts shared in the video...
Chris highlights in the video that even from the record market highs of February 2020, the last 12 months look better than average. Accounting for a 30%+ decline in the middle of it is truly astounding. A reminder that selling in the midst of the storm is rarely a good idea.
When looking at what markets have done from the bottom of March 23, 2020 the numbers are really eye popping. If you Dollar Cost Average into the markets through your 401(k) or a regular investment discipline, the dollars that hit close to this time have been treated exceptionally well.
Chris shows some of the individual stocks within the sectors worst hit by the COVID Crisis highlighting the benefit of diversification to spread your risks.
Jesse picked the chart above as his favorite for the year. He shares how earnings growth support the thesis of investing - growing the value of a dollar over time - but also the ugly reality of what happens to stock prices when investors fear that earnings evaporate. The market recovery while the economy and world continued to struggle with the pandemic supports the old axiom that "Investors care less about whether things are good or bad, but rather if things are getting better or getting worse."
Thank you for watching. Let us know if you have thoughts on topics you’d like us to cover.