The year 2023 has proven to be quite unusual for the stock market. Despite experiencing significant turbulence and volatility, the S&P’s annual return has consistently remained above 15%, prompting the question: why?
The S&P 500 comprises a group of seven noteworthy companies referred to as the “Magnificent 7.” These are:
- Alphabet (Google)
In our latest video, we delve into the performance scenarios excluding these seven companies. Additionally, we analyze several charts to provide insight into the significance of understanding the 10-year treasury and offer projections for what we can anticipate in 2024.
- The stock market is being significantly boosted by the “Magnificent 7”. hindering the real performance of the S&P 500 today.
- The 10-Year Treasury is an important basis on which to understand the valuation of the stock market.
- Expectations for 2024 are higher now because interest rates have started to flatline and inflation is scaling back.
This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results.
Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred. Returns do not include reinvested dividends.
The Standard & Poor’s 500 (S&P 500) Index is a free-float weighted index that tracks the 500 most widely held stocks on the NYSE or NASDAQ and is representative of the stock market in general. It is a market value weighted index with each stock’s weight in the index proportionate to its market value.