Major Market ETF Performance

Above I've posted a chart showing the performance numbers of many of the major US market indices that we follow.  Quietly now these indices have started to show some impressive results for 2016.  The S&P 500 {light blue in the middle of the chart} on a price basis is now up over 7% for the year.  It's equal weighted component {shown here in pink under the symbol RSP } has posted double-digit returns.   More growth oriented indices like the NASDAQ have been significant laggards.  However, they've recently shown signs of life as their performance has been strong in July.  These indices are heavily weighted by technology companies and growth oriented medical securities.  These kinds of companies have posted quite strong numbers in July  What might be stunning to some is this performance comes against some of the more negative investor sentiment views we've seen in some years.  Then again, that seems to always be when markets want to rally.    

Just as a reminder you can double-click on these charts in order to make them larger.

The next chart features the same indices but shows you how they've done since the "Brexit" vote, the referendum where Great Britain  voted to leave the European Union.  There was panic on the street that day and the doom-sayers were out in droves on what was going to happen.  We said then that nobody could possibly know the long-term results of that vote and we stick by that analysis.  The short-term results are unequivocal about how the market has voted.  If you had followed the herd on that day or soon after and sold then you missed out on some pretty decent gains.

Now markets are very overbought and a round of profit taking will likely occur at some point so I expect to see some of these gains given back.  As I've also stated countless times, we are now entering an historically weaker period for stocks so anything is possible.  But that doesn't take away from the fact that investment returns at least as far as the major indices are concerned has been pretty solid in 2016.

Performance charts are from Stockcharts.com.    Back Wednesday.

*Long ETFs related to certain of these indices in client & personal accounts.    Please note positions can change at anytime without notice.