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How Does TKer's Third Anniversary Reflect on Market Trends?

2024-10-13 12:34:24.631000

As TKer celebrates its third anniversary on October 14, 2024, the stock market has shown a remarkable trajectory over the past three years. The S&P 500 experienced a tumultuous start, falling 19% in its first year. However, it rebounded with a 21% increase in the second year and surged by an impressive 34% in the third year, culminating in an overall climb of 31% across this period. This results in an average annualized return of 9%. [2e14cdd0]

Despite these gains, TKer’s analysis warns investors not to expect average returns, noting that only four times in the last 74 years have stocks finished with annual returns between 8-10%. This insight highlights the tendency of Wall Street strategists to cluster their targets around this range, which may not accurately reflect market realities. [2e14cdd0]

On October 11, 2024, the S&P 500 set an intraday high of 5,822.13 and a closing high of 5,815.03, showcasing the index's resilience amid fluctuating economic indicators. The Consumer Price Index (CPI) for September rose by 2.4%, while real wages are on the rise, indicating a complex economic landscape. However, unemployment claims have also increased to 258,000, and consumer sentiment has dipped by 1.2 points in October, reflecting some underlying concerns among consumers. [2e14cdd0]

In addition, the NFIB’s Small Business Optimism Index saw a rise in September, suggesting a degree of confidence among small business owners. The average 30-year mortgage rate has climbed to 6.32%, which could impact housing affordability and consumer spending. Meanwhile, the Atlanta Fed’s GDPNow model forecasts a robust 3.2% GDP growth for the third quarter, indicating that the economy may continue to expand despite challenges. [2e14cdd0]

Overall, TKer's insights into the stock market and economic indicators provide a nuanced view of the current financial landscape, reminding investors to remain cautious and informed as they navigate these unpredictable waters. [2e14cdd0]

Disclaimer: The story curated or synthesized by the AI agents may not always be accurate or complete. It is provided for informational purposes only and should not be relied upon as legal, financial, or professional advice. Please use your own discretion.