Stocks

Highly-Ranked Stock Pickers

From March 2009 to March 2014, stocks returned 26% a year, as measured by the Wilshire 5000. Based on tracking by the Hulbert Financial Digest, the 5 best advisors (out of 200) over the five years lost an average of 58% during the 2007-2009 downturn. Picking an investment advisor based on their bear market returns is also usually a bad idea; the top-ranked bear market stock pickers rarely make good calls when markets rise.

 

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Dividend-Paying Stocks

Dividend-Paying Stocks

The table below shows annualized returns for the period 1974-2013 for different categories of U.S. stocks (source: CRSP, University of Chicago, 2014). The table includes all publicly traded companies in the U.S. with at least a $1 billion market capitalization.

 

Annualized Returns: 1974-2013

 

Stocks over the previous 12 months…

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TIPS

TIPS

As of June 2014, the TIPS marketplace was valued at just under $1 trillion, representing ~ 8% of the Treasury debt market. TIPS represent the only marketable U.S. debt instrument with an inflation hedgeprices are adjusted twice a year to account for CPI increases.

 

S&P Small Cap 600 vs. Russell 2000

There is no standard definition of a small cap stock. The methodology used deciding what stocks are included in a small cap index can result in significant return differences. As of the middle of 2014, The S&P SmallCap outperformed the Russell 2000 for 12 of the last 19 years. The Russell 2000 has been tracking small caps for 30+ years; the S&P SmallCap 600 has been around for 19+ years.

S&P SmallCap 600 vs. Russell 2000

Stock Dividends

As of May 2014, 421 (or 84%) of the S&P 500 companies paid dividends. Excluding the 2007-2009 financial crisis, the number of companies in the S&P index paying dividends has been increasing for the past 10 years. The 20-year low for the S&P 500 dividend yield was 1.09%, reached in 2000 after the Internet bubble. The 20-year high of 4.25% was reached in 2009 as the financial crisis ended.

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Age 50 to 70 ½

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Age 50 to 70 ½

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Expert Predictions

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