Is 2021 Back to Normal Yet?

(Re) Open For Business

Here we are halfway through 2021. Restaurants and business throughout the nation are re-opening. How is this return to normal playing out in the economy and stock and bond markets?

As of June 30th, according to S&P Dow Jones Indices, the S&P 500 index of US stocks is up 15.2% year-to-date (YTD). The stock index has an average dividend yield of 1.4%. The S&P US Aggregate Bond Index, is down -1.4% YTD.  The bond index has a yield-to-maturity of 1.3%.

The chart below highlights recent prices, total returns (total return always includes dividends), dividend yields, and trailing and forward-looking P/E’s (price-to-earnings ratio) for several S&P Dow Jones Indices.


Market
Index

Closing
Price 12/31/2020
Closing
Price 06/30/2021
YTD
Tot. Return
06/30/2021
Yield
%
Trailing
Twelve Mo
P/E
Forward Estimate P/E

S&P 500

3,756 4,297 15.2% 1.4% 30.9x 21.8x
DJIA 30,606 34,502 13.7% 1.8% 28.5x

20.2x

S&P US Aggregate Bond Index -1.4% 1.3%

*Statistics for 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 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.

More Posts Like This

  • Investing & Recessions

    Our Outlook

    The problem with recessions is that earnings decline, and P/E multiples decline both at the same time. When these two metrics decline at about the same time, a significant market decline (drawdown) typically occurs. In the post WWII era, the worst drawdown occurred between December 2007 and June 2009 when the S&P 500 declined -57%. […]

  • Recession Signal?

    Our Outlook

    Over the past several decades, one of the most reliable economic indicators has been the shape of the US Treasury yield curve.  The yield curve is simply a graph of current yields on treasury bonds from the three-month T-Bill to the 30-year treasury bond. The normal shape of the yield curve from left to right […]