Stock Market Returns Year To Date Through Friday
Each week I like to review how many stocks are higher and lower for the year. Currently, 2525 stocks are higher and 2083 are lower. 18 stocks are flat for the year.
So 54.50% of stocks are higher for the year. However, one bad week and we could see another 305 stocks, that are positive year to date but up less than 3%, turn into the red and then we would have more stock down than up.
Why is this important especially at this time of the year. In August and September, the mutual funds decide which stocks to sell for tax losses so they do not stick their customers with a tax bill when the returns are substandard.
As such, we need to pay attention to this metric. Right now it does not predict imminent pain for the market. However, this could change and going forward we will detail this in our weekly summary.
Job #`1 for us is to look out for you, our reader, and make sure you are prepared for the unexpected.