Despite Crises, Economic Fundamentals Are Strong
Europe's economy slowed sharply, a U.S.-China trade war loomed, fears of a real war with North Korea grew, while U.S. politics sank deeper into chaos, and a gunman massacred at least 49 innocents attending services at a Christchurch, New Zealand mosque, even as they prayed. It was a week of crises.
Since 1957, the internal rate of return on American stocks has been 6.9%, and there were plenty of crises all along the way.
The Standard & Poor's 500 stock index closed at 2,822.48 on Friday, up sharply from 2,743.07 a week ago, and rebounding the close of 2,803.69 two weeks ago.
A key growth investment in a broadly diversified portfolio, the S&P 500 index is volatile, unpredictable, and suffered a 19.8% plunge from September 20th's all-time closing high to the Christmas Eve closing low of 2,351.10. Despite a week when the world seemed full of crisis, U.S. stocks endured and the uncertain struggle toward progress — which can never be guaranteed — continued at its seemingly relentless pace.
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.
- Longest U.S. Expansion Keeps Rolling
- Retirement Income Reality Check
- Find The Major Economic Trend Hidden In This Picture
- 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