Fears sparked by reports of a possible default at China’s Evergrande, and the impending US debt ceiling limit drove the S&P 500 to a -4.6% loss in September. How quickly fears faded after Evergrande averted default (for now) and congress extended the debt ceiling limit to December 3rd. These thaws and strong Q3 corporate earnings helped generate a 7.01% S&P 500 gain in October.
The chart below highlights recent prices, total returns (total return always includes dividends), dividend yields, and trailing and forward-looking P/E’s for several major indices.
|
Market |
Closing Price 12/31/2020 |
Closing Price 10/29/2021 |
YTD |
Yield |
Trailing |
Forward Estimate P/E |
|
S&P 500 |
3,756 | 4,605 | 24.0% | 1.4% | 27.1 | 20.4 |
|
DJIA |
30,606 | 35,819 | 18.7% | 1.8% | 22.5 |
18.7 |
| S&P US Aggregate Bond Index | -1.34% | 1.5% |
|
*Statistics on S&P 500 index, DJIA index, and S&P US Aggregate Bond index from S&P Dow Jones Indices.
Disclaimer
This material is provided by Schmitt Wealth Advisers for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Schmitt Wealth Advisers are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from publicly available sources (unless otherwise noted) and are believed to be reliable. Schmitt Wealth Advisers, however, cannot guarantee the accuracy or completeness of such information. Past performance may not be indicative of future results.
