2021 Performance

[VicBee]

https://www.visualcapitalist.com/how-every-asset-class-currency-and-sp-500-sector-performed-in-2021/

 

[maxinger]

investors will be keen on this info.

for day traders, are we interested to know the cumulative day range for the various asset classes.

 

[mason macgregorson]

https://www.visualcapitalist.com/how-every-asset-class-currency-and-sp-500-sector-performed-in-2021/

understand poor performing stocks (Twitter) in SP 500 are replaced with high performance regularly (Amazon) so it final % are manipulated.

 

[deaddog]

understand poor performing stocks (Twitter) in SP 500 are replaced with high performance regularly (Amazon) so it final % are manipulated.

You have to understand that the S&P indexes are a managed momo strategy to benchmark your performance.

 

[ET180]

You have to understand that the S&P indexes are a managed momo strategy to benchmark your performance.

That doesn't disqualify it as a benchmark. The adjustments are very infrequent.

 

[deaddog]

That doesn't disqualify it as a benchmark. The adjustments are very infrequent.

I didn't say it did. I think it's a great benchmark. If you can't outperform the market, why are you trading?

 

[mason macgregorson]

I didn't say it did. I think it's a great benchmark. If you can't outperform the market, why are you trading?

of the original 500 S&P stocks, 456 have been replaced - many multiple of times over and over for better performing stocks. The original 500 return is -11,900%. Can you beat that return?

 

[newwurldmn]

of the original 500 S&P stocks, 456 have been replaced - many multiple of times over and over for better performing stocks. The original 500 return is -11,900%. Can you beat that return?

If you bought a basket of the original 500 stocks, how can you lose 11x your money?

 

[deaddog]

of the original 500 S&P stocks, 456 have been replaced - many multiple of times over and over for better performing stocks. The original 500 return is -11,900%. Can you beat that return?

LOL Yup I think I can.
Since 1994 a retail trader could afford to trade the index with SPY. It's a good benchmark as it allows you to compare your portfolio with the index. If you cannot outperform the index, a portfolio of the 500 or so best stocks in the US, why are you trading?

 

[mason macgregorson]

If you bought a basket of the original 500 stocks, how can you lose 11x your money?

it seems to be based on the eventual fate of the many, many companies that were removed from SP 500 since 1929 (https://www.dogsofthedow.com/djdelete.htm) and replaced with robust ones. So many of these companies went on to declare bankruptcy (i.e. Sears, Radio Shack) = 100% lost value x all those that failed or are now at marginal value. When their values are complied, numbers are not so good.