January 9, 2018

What lies ahead for investors in 2018?

Wall Street Journal columnist Jason Zweig wrote this about the stock market on Jan. 5 in "sure things to happen in 2018":  "long-term returns are likely to be distorted this year. In September and October 2008, the depths of the financial crisis, U.S. stocks fell 9.1% and 16.9%, respectively. This fall, those apocalyptic months will finally be more than 10 years behind us — and, as a result, the long-term return on equities will go up like a rocket."
"In fact, the S&P 500’s 10-year cumulative return would leap from 82.1% at the end of 2017 to 198.3% at the end of this coming November — even if stocks go absolutely nowhere for the first 11 months of 2018, says Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
That would nearly double the average 10-year gain to 11.5% annually from 6.2%, without even counting dividends."
"Stocks will then look much more attractive in the rear-view mirror, even though nothing will have changed but the calendar. Don’t believe the hype."
Zweig sure knows how to provide perspective on investing!
Source: "Four Things Sure to Happen in Markets During 2018"

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