Ismael De La Cruz | Apr 17, 2023 13:39
Market breadth, which reflects the strength of the market, has probably gone unnoticed by many investors.
It is important for two reasons:
1) It shows whether the rise or fall of a stock market index reflects the trend of the majority of the stocks that make up the index.
2) It also reflects the percentage of stocks in a stock index trading above their moving averages.
A 60/40 investment portfolio is 60% stocks and 40% bonds. This is why it is also called a balanced portfolio.
In other words, it is a type of investment based on investing 60% of the capital in equities, which have a higher risk potential but also a higher potential return, and 40% in bonds (fixed income).
2022 was a challenging year for this portfolio, falling by -16.1%. But so far, in 2023, it has risen by +6.2%.
If we look at the figures for the last 94 years (excluding the current 2023), it has proved to be a successful investment strategy:
Of the 94 years, it had a positive return in 73. The best years were:
Of the 94 years, it had a negative return in 21 of them. The worst years were
I would like to highlight several key dates to watch. In some cases, these are significant events for the markets. In other cases, they are events that are unlikely to move markets.
However, depending on how they might unfold, it is best to be aware of them, just in case.
Bullish sentiment, or expectations that stock prices will rise over the next six months, rose 10.8 points to 33.3% but remains below its historical average of 37.5%.
Bearish sentiment, or expectations that stock prices will fall over the next six months, fell 10.6 points to 35%, its lowest level in seven weeks. However, bearish sentiment remains above its historical average of 31%.
Disclosure: The author does not own any of the securities mentioned.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.