The Most Astonishing Fact About The Stock Market Since 2010
- Posted by TheArmoTrader
- on September 28th, 2012
I was just messing around on FRED today, and I decided to pull up the S&P 500. I ran across an astonishing fact that I couldn’t even believe. And I don’t mean “I couldn’t believe” in a narcissistic way. I’ve been someone who has been banging on the table about the bullishness and resilience of the market for the last year. That the US markets have been one of the strongest, despite slowing global growth.
So what I did to the S&P 500 is as follows.
I changed the time-frame to a weekly chart, narrowed it down to the last 5 years, and made the scale to show the Year-Over-Year (YoY) change. What I saw was pretty amazing. Since the first week of October 2010, the market has only had 7 weekly negative YoY readings. That’s out of a 156 weeks, meaning 95.2% of the time had you had bought (the market) a year ago, you would’ve been sitting positive. And those 7 times? The largest negative reading was only -1.6% (in early October 2011). This doesn’t even include total returns (dividends!).
While this is obviously a “side-effect” of a massive 4 year bull-market (this is not the first time this has happened), it is still amazing this has held true given what has happened since the bottom of the stock market in 2009 (Flash Crash, Europe double dip/riots, BRICs slowing down, debt ceiling fiasco, oil spikes, +8% unemployment, etc). Just goes to show you how resilient and strong the market really is.
So here’s the chart.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry "TheArmoTrader" Khachoyan is currently an active trader, investor, market commentator, and Finance-Twitter participant. He started being involved with financial markets in September of 2008. He concentrates on using technical analysis and an understanding of macro to determine his trades and investments. He graduated UCLA with a degree in Political Science in 2013. The stock market to him is one of the greatest inventions by man.
- Has Coal Bottomed?
- Running Into Resistance Once Again
- Are Higher Rates Really Good For Financials?
- Japanese Equities Are Looking Bearish
- Is Apple About To Turn Higher?
- Damn Gold, Back At It Again!
- Have Negative Interest Rates Hurt Stocks?
- Hanging On By A Thread
- It Pays To Wait
- When A Failed Recovery Is All Right
- Is The US Dollar Setting Up For Another Big Run?
- There’s One Commodity Surviving The Recent Slaughter
- Oil Is In a Bear Market & It’s Looking Like It Will Stay There
- You Probably Shouldn’t Freak About The Weakness In Manufacturing
- Gold Is Still Looking Like Death