One of the more interesting ways you can look at the S&P 500 (Index: SPX) is to chart the relationship between the index' value and its underlying dividends per share. When you do, you can identify periods of relative order and periods of comparative chaos.
Here's an example of that looking at the S&P 500 in the period from 30 September 2019 through 9 March 2021, where we find a relative period of order running from 14 October 2019 through 23 January 2020. The rest is a period of chaos, brought on by the onset of the coronavirus pandemic and punctuated by various monetary policy interventions by the Federal Reserve and fiscal policy interventions by the U.S. government.
If regular order is defined by having trailing year dividends per share coupled in positive growth with the value of the S&P 500 index, when do you suppose that kind of order might return to the U.S. stock market? Is it possible to have a sustained negative relationship with rising stock prices and falling dividends? What kind of fiscal and monetary interventions would it take to sustain that kind of negative order? And what would happen if those interventions cannot be sustained?
Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:
ironman at politicalcalculations
Thanks in advance!
Closing values for previous trading day.
This site is primarily powered by:
CSS Validation
RSS Site Feed
JavaScript
The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.
Other Cool Resources
Blog Roll
