Published Friday, January 20, 2023 at: 8:21 PM EST
The Standard & Poor’s 500 surged 1.9% Friday, as super-capitalized tech giants Alphabet and Netflix surged. Tech’s sharp one-day advance is making headlines now but investing in a portfolio for retirement income or for the benefit of the next generation is not about a single day’s return.
In an environment in which the media constantly headlines single-day returns, we’re here to help you stay focused on what’s more important: longer term returns.
Here are 12-month industry sector returns for 2022, as defined by Standard & Poor’s. Tech sector stocks lost a whopping 28.2% of their value in 2022. The stinging loss in the year ended December 31, 2022 is a fact commonly omitted in Friday’s coverage of the stock market by major financial media.
Daily headlines rarely mention longer-term performance or how a one-day surge fits in with a portfolio managed for a prudent investor over the long run.
We’re here to remind you that financial news is often irrelevant to permanent investors, whose goals are building a portfolio to generate income in retirement or to benefit the next generation. The financial media’s main focus is on trading by Wall Street professionals, which is not the focus of an investor building a portfolio that is invested for a lifetime.
The S&P 500 stock index closed Friday at 3,972.61 gaining 1.89% from Thursday, and down -0.66% from a week ago. The index is up 77.55% from the pandemic bear market low on March 23, 2020, and -17.17% lower than its January 3, 2022, all-time high.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.
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. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. 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. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
Dachtler Wealth Management
2130 East Bidwell Street
Folsom, CA 95630
Bank Panic And Strong 1Q '23 Economic Growth
Four medium and small sized U.S. banks required Federal regulators to take over management of their operations and assets or shore up their depositor bases since March 7, casting new
With the risk of a banking crisis roiling investors, the latest developments included signs that the crisis would be contained, and the chance of a contagion and systemic threat to
This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your registered representative. Read it carefully before you invest or send money. Securities products are limited to residents of AZ, CA, CO, FL, GA, ID, IL, IN, KS, MA, MO, NC, NE, NM, NV, OR, TN, TX, UT and WA.
Securities and Advisory Services offered through Calton & Associates, Inc. Member FINRA/SIPC. Dachtler Wealth Management, LLC and Calton are not affiliated. www.finra.org, www.sipc.org
A Representative from Dachtler Wealth Management will contact you to provide requested information.
Representatives of Calton & Associates, Inc do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation.
CA License # 0658362