All- time- highs

Nov 15, 2019 | Jeremy Goldfarb


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Most retail investors in Canada will follow 2 or 3 benchmarks to understand where the market is. The TSX composite, the S&P500, and the MSCI World Index (you could swap the DOW for the S&P if you wanted to, but I don't think that is fair measure). In the US, most will follow the S&P, the DOW, the Russell and in some cases, the MSCI.

 

So......here we sit on November 15, 2019, and each index I have highlighted above has reached an all time high. It sparks mixed emotions among most investors, a cocktail of excitement and concern. It's "Hey! We are here!" ...... and ..." hey....we're here". Same statement, different tone. So let's add a little bit of perspective shall we. We are in fact here, but where have we come from?

 

  • The TSX composite index reached a high of 16,560 in October 2018. It sits at 17,035 as of writing. A gain of approximately 2.8%
  • the S&P500 index reached a high of 2,930 in October 2018. It sits at 3,114 as of writing. A gain of approximately 6.2%.
  • MSCI world hit 2,248 in January 2018. It sits at 2,279 as of writing. A gain of approximately 1%

 

The fact is, it has been a hugely productive 2019 from the stock markets' standpoint. Investors heavily weighted in equities have enjoyed a great year. With that in mind, 2018 was a different story altogether. A massive January run out of the gate in 2018 was met with a plummeting downfall in October and December, leading to a very uncomfortable investing public at the commencement of 2019.

 

So here we are. What now?