CNBC stock market shares have lost over 70% in the last two years – and still hold solid gains
CNBC stock markets have lost almost 70% of their value since last year, according to data released Thursday.
The Dow Jones Industrial Average (DJIA) has fallen 678 points, or 2%, since the start of 2018, while the S&P 500 (SPX) has gained just 6.7%, or 0.2%.
In 2017, the S-1 index, which tracks the Dow’s performance in the past 30 days, fell almost 50%.
The decline in stocks has been particularly pronounced in the U.S., where the S/E ratio has declined from 9.6 to 7.6% over the past year.
However, investors still expect the S and P to climb, and the S.P. has risen more than 20% from its peak last year.
“The S&P 500 has gone through a tough patch in recent months, but it’s showing some signs of life,” Jefferies analyst Daniel Pachter told CNBC.
“In terms of growth, there is a little bit of an uptrend at the moment, and we’re still expecting it to come back to about 7% in 2019.”
Pachter added that stocks should continue to outperform the S & P 500.
“It is clear that stocks have a lot of room to grow,” he said.
“We believe they will outperform by 2020, but they still have a long way to go.”
The S < P index was last down more than 12% in March, and was up more than 22% in February, according a Bloomberg terminal chart.
Predictably, the Nasdaq stock market also fell in the face of the decline in the S P, and this is likely to continue, according CNBC’s Eric Liddell.
The Nasdaq index is up 7.2% in 2017, but is down almost 19% in 2018.
On the other hand, the Standard &=Share (S&=P) index is down 10.4% in its history, and is up almost 8% in 2020.
According to Pachner, the two indexes are unlikely to fall as much in 2019, because the S S<P is still underperforming.
But if the market continues to perform well, then investors could be in for a “blessed rebound,” he added.
(Read more: How the stock market will recover from a stock market crash)