Markets Right Now Update

The market closed Friday down 915 points! So, after this week's rally, where are we? The chart below shows the returns for the major asset classes since the start of the year. As always, rather than show the indexes, which you cannot buy, I prefer to show the index ETFs*, which can be bought by any investor!

Source: Yahoo Finance*

BND=Vanguard Total Bond Fund

QQQ=Invesco QQQ Trust

SPY=SPDR S&P 500 ETF

IWM=iShares Russell 2000 Index

The chart above shows where we are as of yesterday's close. Note the charts above AND below show the change in value of $1000 invested at the beginning of the year. 

Bonds are flat, stocks are down, small stocks (represented by the Russell 2000 ETF IWM) down the most and for good measure, I am adding, below, returns of two commodities important to many people: gold and crude oil.

Source: Barchart.com

GCZ=December 2020 Gold

CLZ=December 2020 Crude Oil

Here's what the numbers look like:

*Note "drawdowns" measure the decline from the market's highs. Maximum drawdown measures the percent drop from high to low, Current drawdown measures the percent decline from high to today's price. 

The IWM had the largest stock market drawdown, -41%, versus the SPY's -34%. Bonds performed well providing the downside protection investors expect. QQQ, surprisingly, had a little LESS risk than the S&P. 

What's interesting to me is that stocks recovered nearly a third of their losses between the lows and yesterday. Note bonds and gold are barely down while crude oil, in the throes of a price war, is down a dismal -43%! 

*One advantage of using Yahoo Finance data is ANYONE, using symbols or search, can download daily historical data for free and see for themselves. I use "Adjusted close" data to include the value of distributions, if any. Finally, I have a problem using proprietary or obscure data. Note any data errors WILL be reflected when the data is used. Barchart.com, in my opinion, is the best source for futures prices that average investors can get. 

Feel free to post comments.

Disclaimer: Posts are for education only and not investment advice, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors.