For the first time in 2022, the S&P 500 finished the month up from the previous month with a total return of 3.6% in March. The year-to-date total return is -4.7% for the benchmark stock index.
While rising Fed funds rates are historically a negative for stock, the result has been worse for bonds so far. The S&P Aggregate Bond Index is down -5.5% year-to-date due to rising rates. Viewed from a slightly positive perspective, income yields on the aggregate bond index are up 0.50% from last month.
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 |
Closing |
YTD |
Yield |
Trailing |
Forward Estimate P/E |
|
S&P 500 |
4,766 | 4,530 | -4.7% | 1.4% | 24.0x | 19.5x |
|
DJIA |
36,338 |
34,678 | -4.2% | 1.9% | 18.9x |
18.2x |
| S&P US Aggregate Bond Index | -5.6% | 2.8% |
|
*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.
