2/22/15

The secular trend of the stock market

 
 
 
The long-term trend of the S&P 500 is closely related to the growth of almost everything else such as GDP or personal income (click on the chart to enlarge it). Its long-term growth has been 6.4% since 1930.
The market cannot grow fester than the economy over the very long term. Stocks are just an expression of the economy, If they would grow faster then the economy they would become "the economy" - which is simply impossible!
The main issue from an investor viewpoint to be learned from the above chart is that there have been long periods of time when stocks showed no appreciation for many years such as in the 1930s, in the 1970s, and in 2000-2013.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD
Editor
The Peter Dag portfolio
Since 1977

Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

STRATEGIC INVESTING FOR UNCERTAIN TIMES.
Learn how to manage your portfolio risk and sleep comfortably. Improve the certainty of returns by taking advantage of business cycle trends. Learn to use simple hedging strategies to minimize the volatility of your portfolio and protect it from downside losses.

You will receive your user id to access 2 FREE issues – and all the previous ones - of The Peter Dag Portfolio. Email your request to info@peterdag.com. New subscribers, please.

FOLLOW ME ALSO ON TWITTER @GEORGEDAGNINO FOR MY LATEST VIEWS. 

No comments: