All of the 'big four' indexes have come at least 75% back
-
Jason Goepfert
Published: 2020-06-10 at 10:30:00 CDT
With the latest surge in small-cap stocks, all of the 'big four' equity indexes have made back at least 75% of their declines. The Russell 2000 was the last holdout, being led by the Nasdaq Composite, S&P 500, and Dow Industrials.
Since the inception of the Russell 2000 in 1979, by the time all four indexes had recovered at least 75% of their declines from a 52-week high to a 52-week low, it indicated strong, broad-based recoveries. This also meant that stocks had traveled far, and usually fast, so short-term returns were below average. But by the time it entered a medium- to long-term time frame, returns were good.
Among the other indexes, one in particular performed even better than the S&P.
This is an abridged version of our recent reports and notes. For immediate access with no obligation, sign up for a 30-day free trial now.
We also looked at:
- Returns in each index when all of the 'big four' indexes retrace at least 75% of major declines
- The NBER has announced a recession (business cycle peak) - what happens to the S&P 500, factors, sectors, and other assets
- Almost all of the Fidelity sector funds are beating the return on cash
- Every developed market index has beaten the yield on 10-year notes over the past 3 months
- Almost every S&P 500 sector has beaten that return, too
- It's a risk-on environment, but the U.S. dollar is falling - what that means for stocks, the dollar, gold, and silver
Related Posts:
- One of the worst quarters ever for safe havens
- Weekly Wrap for Mar 26 - Passing the 1-year anniversary with more excesses
- New lows tick higher even with historic year-ago comparisons
- A commodity super cycle with no losers
- A momentous shift in momentum
Tagged As:
The post titled All of the 'big four' indexes have come at least 75% back was originally published as on SentimenTrader.com on 2020-06-10.
At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.
Follow us on Twitter for up to the minute analysis of market action.
Follow @sentimentraderNot ready to signup up for a free trial yet?
Signup for our Daily Lite email to receive highlights of our daily report, research and studies.
Follow us on Twitter:
Follow @sentimentraderSubscribe to our Youtube Channel:
RSS Feed
Subscribe to the Blog RSS feedTags
Recent Blog Posts
Brought to you by:
>