More Articles  Printer Friendly Version


Viewing Financial News Through The Long Lens Of History

4877 3

Getting the news isn’t so easy these days! While being constantly bombarded, you need to filter everything you see and hear. Political, environmental, and financial news -- even sports – requires a sophisticated high-tech lens.

When filtering news about the economy and investments, it is wise to view everything through the long lens of history. It dramatically expands the scope of your knowledge, revealing a more realistic picture of what’s happening now.

For example, can you spot the major shift in the U.S. stock market in these figures?

If you answered by noting that the S&P 500 growth stocks are lagging badly, good for you! That’s right!

4877 5

For small-cap value stocks to outperform the large-cap S&P 500 growth companies marked a major shift in leadership! But you could not have known that by looking at this chart of the last quarter.

To know that a new trend may be under way, you would have to know the long-term history of the stock market. Only by looking at these numbers through a long lens reflecting history would you be able to see this important shift in market leadership.

4877 7

Just a quarter earlier, large cap growth stocks massively outperformed small and mid-cap value stocks, and that has been the long-term trend.

And, again, to know that, you’d have to examine the last five years of performance.

Financial news is rarely reported from the historical perspective of an investor building a sustainable retirement income stream. Count on us for financial news filtered through a lens reflecting history and investment experience.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial or tax situation, or particular needs. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. The material represents an assessment of financial, economic and tax law 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. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. The material represents an assessment of financial, economic and tax law at a specific point in time and is not a guarantee of future results.

Email this article to a friend

The Cost Of Not Having A Financial Plan Is Surging
Equity Risk Premium Grew Wider And More Important
The Facts Amid Rising Fears Of Inflation
New Identity Fraud Tactic Targets Amazon Prime Users
A Professional Perspective On 2020, The Cruelest Year
Act Before Hitting The Crossroad Of Fiscal And Tax Reality
The Bull Market Broadened Recently
An Important Investment Idea To Remember In 2021
New Covid Aid Law Waives 10% Penalty On Pre-59½ Retirement Plan Withdrawals
What Business Owners Need To Know About The New Aid Package
A Call To Act On The Coming Tax Hikes
Staying Focused On Strategic Financial Planning
Will M2 Be The Big Investment Story Of 2021?
Test Your Knowledge Of Urgent Wealth Management Issues
Neither Red Nor Blue, Tax Planning Is All About The Green

This article was written by a professional financial journalist for Delta Financial Advisors, Inc and is not intended as legal or investment advice.

©2021 Advisor Products Inc. All Rights Reserved.