Chart Talk {10.03.19}

It's been awhile since we've taken a look at a bigger picture chart of the market.  Today's chart is a weekly chart of the S&P 500's ETF, SPY.  It comes to us from Stockcharts.com although the annotations are mine.  I needed a view of the S&P 500 that's not as marked up as my regular charts tend to be.  What I'm showing you is an amplification of something I said last Friday.  I noted the following about the stock market under President Trump:

"In terms of the stock market, the S&P 500 is currently up about 40% since the President was elected back in 2016, excluding dividends.  Most of that gain came between his election and late January 2018.  Since that time the S&P 500 is up slightly under 4%.  We also experienced a 20% correction in the last quarter of 2018."

The gain I was discussing last week can be seen in the two blue circles on the chart.  The lower one shows where the market was when the President was elected and the higher circle shows where the market topped out back in early 2018.  That's the 40% gain I was talking about.  If you look at that circle and then the one farthest to the right then you can see the tepid gains we've experienced since then.  You can also see by comparing that other red circle going back to last year to the one furthest two the right that stocks have basically treaded water in the last 12 months.

Markets like this are why we think the dividend component to our ETF strategies is important.  Markets can tread water or even decline for certain periods of time but the dividends that are paid out our yours to keep and do with as you wish.

I am experiencing a family issue that may keep me out of the office for the early part of next week.  If I have to be gone then I will be posting again mid-week.  

*Long ETF’s related to the S&P 500 in both client and personal accounts.  I reserve the right to change these investments without verbal, written or electronic communication at any time.