FTDS - Equities Shine Over Bonds

2024-04-02 03:20:00 ET

Summary

• Helped mainly by the massive gain since late October, the S&P 500’s one-year trailing total return through the end of March clocked in at 30.5% or nearly triple the historical average of 11.8%.
• Looking out over the last five and ten years, annualized returns have been well above average, but over the prior twenty years, the S&P 500's performance has been sub-par.
• Equity market returns may have been below average over the last two and twenty years, but you won't find many equity investors looking to trade shoes with investors hiding out in long-term US Treasuries.

Helped mainly by the massive gain since late October, the S&P 500's one-year trailing total return through the end of March clocked in at an eye-watering 30.5%, or nearly triple the historical average of 11.8%. While the rally over the last year has been well above average, it followed a period of weak returns in the prior year. When you combine the last two years, the S&P 500's annualized gain of 9.7% is nearly a full percentage point below the long-term historical average. Looking out over the last five and ten years, annualized returns have been well above average, but over the prior twenty years, the S&P 500's performance has been sub-par....

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