Market Quick Stats – January 2022


The S&P 500 finished down (-5.2%) in January, the worst start since a (-9.8%) loss in January 2009. Notable S&P 500 decliners in January included, Moderna (-33.3%), and Netflix (-29.1%).

The 30 stock Dow Jones Industrial Average saw its biggest declines in Cisco Systems (-12.1%), Home Depot (-11.5%), and Nike (-11.1%). Taking a sneak peek at February, Meta Platforms (formerly known as Facebook) fell (-26.3%) on one day after it posted earnings and weak guidance for the year.

January’s price declines helped valuations a bit, but overall, valuations are still high. This poses an extra challenge as the Fed winds down its bond buying program and raises rates starting (most likely) in March.

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
Index

Closing
Price
12/31/2021

Closing
Price
01/31/2022

YTD
Tot. Return
01/31/2022

Yield
%

Trailing
Twelve Mo
P/E

Forward Estimate P/E

S&P 500

4,766 4,515 -5.2% 1.3% 24.5x 20.3x

DJIA

36,338 35,131 -3.2% 1.9% 20.6x

19.4x

S&P US Aggregate Bond Index -1.9% 2.0%

*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. Schmitt Wealth Advisers does not provide tax or legal advice, and nothing herein should be construed as such. 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.

 

 

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