The U.S. Stock Market Story For 2014

The New York Stock Exchange (NYSE) is a stock exchange based in New York City that is considered the largest equities-based exchange in the world, based on total market capitalization of its listed securities Formerly run as a private organization, the NYSE became a public entity in 2005 following the acquisition of electronic trading exchange Archipelago The parent company of the New York Stock Exchange is now called NYSE Euronext , following a merger with the European exchange in 2007; the NYSE Euronext was acquired by Intercontinental Exchange. Participants in the stock market range from small individual stock investors to larger traders investors, who can be based anywhere in the world, and may include banks, insurance companies or pension funds, and hedge funds Their buy or sell orders may be executed on their behalf by a stock exchange trader.

Of note… there have been many more periods when the stock market was less expensive than the current level, yet the trend-line goes through 0{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a} (the current valuation) on the x-axis at roughly 7.5{d07e726dc35321c1887ba4b2e6d346fe7eafad5ef6cfcf877aa9d8d8ffdb003a} annualized (noisy data, but it makes current valuations less stretched than some would think).Us Stock Market

Meanwhile, you might reasonably think that the inflation phase of the Dot Com Bubble from April 1997 through August 2000 would coincide with a rising number of U.S. firms listed on U.S. stock exchanges, but instead we see that the number of listed firms peaked more than a year before the Dot Com Bubble even began to seriously inflate, where the number of public firms in the U.S. has typically fallen in each year since its peak in 1995-1996.

When companies are profitable, stock market investors make money through the dividends the companies pay out and by selling appreciated stocks at a profit called a capital gain The downside is that investors can lose money if the companies whose stocks they hold lose money, the stocks’ prices goes down and the investor sells the stocks at a loss.Us Stock Market

And while the January effect coupled with inflationary stimulus packages may have helped the market engineer a bit of a rally, the economic woes are still clearly in place, and it looks as though the primary trends are preparing to resume themselves.Us Stock Market