• Ben Maimon

The S&P 500's Fantastic Performance

Updated: May 11


Multi-Factor-World 's topical post does a great job of putting the S&P 500's fantastic recent performance into perspective. As noted, many investors realize that the S&P 500's 352 percent rise from March 2009 though October 2018 has made it one of the best performing asset classes over the past near-decade since the global financial crisis. In fact, the S&P 500's average monthly return of 1.35% over this period was better than over 90% of similar periods since 1926. More remarkably though, the S&P 500's risk-adjusted returns (Sharpe Ratio of 1.30, which adjusts returns for volatility) over this period is almost unparalleled, experienced in less than 1% of sample periods.


We share the author's view that the S&P 500's returns relative to the volatility investors experienced is not likely to repeated in our investment horizon and that it lends support to expectations for modest returns going forward. As such, wise investors should maintain an appropriate asset allocation, and utilize a globally diversified approach, recognizing that at least some portion of their portfolio benefited from a historically great run for the S&P 500.



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The opinions expressed by featured authors are their own and may not accurately reflect those of MaimonWealth. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice.


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