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How do you feel about the stock market?

Another Unimpressive Year in Stocks… But Should You Expect Anything More?

We’re about halfway into the year and the S&P 500 is up 1.56% year-to-date.

The question is “How do you feel about the stock market’s performance this year?”

Do you feel:

a) Good

b) Relieved

c) Fighting Mad

At the beginning of the year Goldman Sachs and other leading analysts forecasted 2016 returns for US equities at just 3%. So you might feel good to see that these projections, however modest, seem to be right on track.

After considering that back in February, less than 6 weeks into the year, the market had suddenly dropped more than 10% you might look at where things are at now and simply be relieved. But if you’re OK with essentially breaking even on your money then you’re better off keeping everything in bonds or money market account.

For anyone who expects a decent return on their capital (like your 401K and other holdings) then I think the answer is a resounding “c”. I’m fighting mad with the stock market’s performance. And it’s not just 2016 that I’m unhappy about. The 5-year average return for the S&P 500 is 11.61%. This might not seem too bad. But when you consider that these returns are coming off historic lows following the financial crisis in 2008–09, are these returns really anything to get excited about? Plus we’ve heard countless times how this bull market can’t go on and that the gains of the last few years have pushed the market into bubble territory. If averaging 11.6% for a 5-year period is bubble-type growth — I’d hate to see what normal looks like. Actually, let’s do that.

The 10-year average return for the S&P 500 is 7.28%. And the 20-year average return? Less than 9%. In fact the S&P 500 has averaged a return of just less than 9% since 1950. For me that doesn’t seem great.

Bottom line: I’ve been fighting mad at the stock market in general for a very long time.

You can do better. And OpenPath Investments can help. Visit our website see how we’ve been delivering 18%+ IRR for our investors for the last 10-years, while doing good for people and the planet, too. Or if you prefer this short video is excellent. Then me know what you think. David at OpenPathInvestments.com

Written by

Investor, Partner, Advisor. First Google Advertising Exec (2000–07), ex-Chicagoan. Now at OpenPath Investments & FullCycle Climate Partners

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