Market Pulse: On this 9/11 anniversary
On the somber 9/11 anniversary on Thursday, we look back at the stock market and can proudly declare that it paid to be bullish on America.
If you bought stocks on the first opportunity after 9/11 you would be up 176 percent including dividends, or a 6.2 percent annual return.
It’s not the only time that being bullish on America paid off. If you bought stocks the day of the Lehman bankruptcy you would have a 90 percent return including dividends, or 9.1 percent annually.
Today, some look at all the negative news headlines and think this time it is different. Being pessimistic is easy. There is ISIS, Syria, Russia, Iraq, etc.
The 24-hour news channels cater to the far left and far right to point out why the other side is wrong. Bad news helps their ratings.
Investors, too, get caught up in the gloom. They buy books predicting bad times and market crashes, written by authors that have made a living predicting things that never happen. It is easy to fall in the pessimistic camp, saying this time it is different. It’s easy, and wrong.
Less reported is the U.S. stock market is having an exceptional year, up 7.9 percent … and that comes after the 30 percent gain in 2013!
Our market is far stronger than other countries. Our economy is improving, with job growth at its best since the late 1990s, and corporate balance sheets are strong.
There is also our growing natural gas supply. The U.S. is the Saudi Arabia of natural gas, which will be a driving force for our economy for many years to come.
It hasn’t paid to bet against this country. It hasn’t … and it won’t.
David Vomund is an Incline Village-based fee-only money manager. Information is found at http://www.ETFportfolios.net or by calling 775-832-8555. Clients hold the positions mentioned in this article. Past performance does not guarantee future results. Consult your financial adviser before purchasing any security.