Tag Archives: S&P 500

Irrelevant Statistics And Related Memes

Without a proper transformation market statistics from several decades ago are not meaningful. Usually the transformation is unknown and that makes comparison not useful. This applies to many trivial statistics, such as streaks with no occurrence of an event or … Continue reading

Posted in Market Statistics | Tagged , | Leave a comment

Extremely Low Volatility Is Not A New Phenomenon

In the last three days the S&P 500 has moved less than 0.33% overall but this has also happened a few times in the 60s and 70s.¬†Extremely low volatility in stock market indexes is not a new phenomenon but its … Continue reading

Posted in Market Statistics | Tagged , , , | Leave a comment

Diminishing Equity Index Returns

Despite new all-time highs and a rally in technology stocks, S&P 500 and NASDAQ 10-year rolling returns remain below their longer-term averages. In fact, in the last four years the 10-year rolling return is range bound in spite of interventions … Continue reading

Posted in Market Statistics | Tagged , , , , , | Leave a comment

The Stock Market Is For Speculation, Not an Income Source

Everyone in financial media is now talking about Vanguard and how it controls more than 80% of the money invested in index funds. Have investors forgotten the recent brutality of the stock market or are they just convinced that another … Continue reading

Posted in Asset Allocation | Tagged , , , , | Leave a comment

Despite Bear Markets, the S&P 500 Is An Intelligent Trading Strategy

The S&P 500 is an intelligent trading strategy and a popular benchmark. I show below that the probability of obtaining the mean return of the S&P 500 by chance is extremely low.

Posted in Market Statistics | Tagged , , , | Leave a comment

Dow Jones Or S&P 500?

There was a heated discussion in Twitter a few days ago with even some harsh language about the importance of the Dow Jones Industrial Average now that the Dow 20,000 level frequently makes the headlines. The answer requires some trivial … Continue reading

Posted in Market Statistics | Tagged , | Leave a comment