- Since 1960 if an investor had bought the S&P500 on the day it reached a 10% decline they would have realized a profit a year later 81% of the time. The average gain over that year was also 12% compared to an average of 9% in all periods.
- Many investors have fled European stock markets since Russia first invaded Ukraine. Yet, the United Kingdom’s FTSE 100 index may be an attractive way to keep exposure to the continent while still hedging against market risks. The traditionally-defensive sectors of energy, materials, healthcare, and utilities compose 58% of the index compared to just 31% for the MSCI world benchmark.
- The company in the S&P500 with the highest revenue exposure to Russia is Philip Morris International at 8%. Other companies with notable revenue exposure include McDonalds (4.5%), PepsiCo (4.3%), EPAM systems (4.1%), and Mondelez International (3.1%)
- Many investors have become accustomed to quick recoveries after corrections. History, however, shows that this is not always the case. If you had invested $1,000 in large US stocks at the beginning of 1966 your investment would have been worth just $580 by 1974. In fact, it would have taken until the end of 1982 for you to make any profit at all (taking inflation into account).
Bloomberg – Stock Market Bottom Slipping Away After 13 Years of Dip Buying
Bloomberg – Recession Risks Are Piling Up And Investors Need to Get Ready
Barrons – Pepsi, McDonald’s, and 8 Other Companies That Have a Lot to Lose in Russia
WSJ – The Secret to Braving a Wild Market
Economic Calendar
Monday: 1 year and 3 year inflation expectations
Tuesday: Producer price index (Feb), Empire State manufacturing index (Mar)
Wednesday: Retail sales (Feb), Import price index (Feb), NAHB Home builders index (Mar), Business inventories(Jan), FOMC Announcement of Fed Funds rate, Fed Chair Powell news conference
Thursday: Building permits (Feb), Housing starts (Feb), Philadelphia Fed manufacturing survey (Mar), Industrial production index (Feb), Capacity utilization rate (Feb)
Friday: Existing home sales (Feb), Index of leading economic indicators (Feb)