Connect with us

topNews

Wall Street’s oldest-ever bull market turns 10 years old

Published

on

(Reuters) – A savvy investor who managed to time the start of Wall Street’s bull market a decade ago – and hold on since then – would now be sitting on a handsome windfall.

The Charging Bull statue, also known as the Wall St. Bull, is seen in the financial district of New York City, U.S., August 18, 2018. Picture taken August 18, 2018. REUTERS/Brendan McDermid

Born in the ashes of the financial crisis, Wall Street’s oldest-ever bull market turns 10 years old on Saturday, with the S&P 500 tripling in value and amply rewarding investors who have owned funds tracking the index for that period.

The S&P 500’s post-crisis low close was 676.53 points on March 9, 2009. During the previous session on March 6, it touched an intraday low of 666.79, which came to be know as the “devil’s low.”

On Friday, the benchmark index closed at 2,743.07, down 2 percent for the week.

Extraordinary efforts by the U.S. Federal Reserve to foster an economic recovery from the financial crisis through asset purchases and rock-bottom interest rates have provided essential support for the market during its bull run. Sweeping corporate tax cuts passed by President Donald Trump fueled market gains for much of 2018, before a steep sell-off starting in September that raised fears the bull run was coming to the end.

 Investors who bought and kept shares in cosmetics retailer Ulta Beauty on March 9, 2009, would have seen their investment gain nearly 7,000 percent during that time, more than any other stock on the S&P 500. Netflix is the second biggest performer over the past decade, up over 6,000 percent.

At the other extreme, telecommunications company CenturyLink has slumped almost 50 percent since the start of the bull run, more than any other stock still in the S&P 500.

The S&P 500 has turned in a handsome annualized return of 15 percent during the bull market, with the consumer discretionary and information technology indexes each up about 20 percent annually.

But timing is everything. An investor who bought the S&P 500 a year before the bull market began would have had to weather steep losses, trimming the S&P 500’s annualized return since then to 7 percent and narrowing the consumer discretionary and information technology sectors’ annualized gains to 12 percent.

GRAPHIC-Annualized growth: tmsnrt.rs/2Ca4i1y

With analysts slashing estimates for U.S. banks and other multinationals, the S&P 500 traded at a low-point of 10.6 times expected earnings in December 2008, before Wall Street’s bear market ended and turned the corner. It is now trading at 16.5 times expected earnings, according to Refinitiv.

After dropping 19.8 percent from its record high close on Sept. 20 through Dec. 24, the S&P 500 has slowly recovered and is now just 7 percent short of regaining that high.

 (Reporting by Noel Randewich; Editing by Alden Bentley and Tom Brown)

Our Standards:The Thomson Reuters Trust Principles.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

topNews

Exit poll has Thai opposition winning most seats but not enough for government

Published

on

By

BANGKOK (Reuters) – Thai voters flocked to the polls on Sunday for the first election since a 2014 coup, and an exit poll indicated the populist party linked to exiled former leader Thaksin Shinawatra would win the most seats, but not enough to form a government.

Thailand’s Prime Minister Prayuth Chan-ocha (L) prepares to vote in the general election at a polling station in Bangkok, Thailand, March 24, 2019. REUTERS/Athit Perawongmetha

The race has pitted military junta chief Prayuth Chan-ocha seeking to retain power and stay on as prime minister against a “democratic front” led by the Pheu Thai Party loyal to Thaksin.

Thailand has been under direct military rule since then-army chief Prayuth overthrew an elected pro-Thaksin government in 2014. Former telecommunications tycoon Thaksin was thrown out by the army in 2006 and has lived in self-exile since 2008.

Unofficial results of Thailand’s first general election since 2011, from the Election Commission, were not due for several hours.

However, immediately after polls closed at 5 p.m. (1000 GMT) the Thai PBS channel aired an exit poll by Thai research center Super Poll that indicated Pheu Thai would win 163 seats in the 500-seat House of Representatives.

The same exit poll indicated junta chief’s Palang Pracharat would win 96 seats, the establishment Democrat Party 77 seats, the Bhumjaithai Party 59 seats and the new Future Forward Party 40 seats.

If correct, the projection would mean that Pheu Thai would not have enough votes to form a majority government in its hoped-for “democratic front” with other parties.

Prayuth’s Palang Pracharat party also could not form a government on its own, but it would have a better chance to form a coalition needed to elect a prime minister due to junta-written electoral rules that favor it.

Turnout was estimated to be high as 80 percent among the 51.4 million Thais eligible to vote, the Election Commission said about an hour before the polls closed.

Critics have said a new, junta-written electoral system gives a built-in advantage to pro-military parties and appears designed to prevent the Thaksin-linked Pheu Thai Party from returning to power.

Voters are choosing the 500-seat House of Representatives. The lower house of parliament and an upper house Senate, which is appointed entirely by the ruling junta, will select the next government.

Pro-Thaksin parties have won every election since 2001, but the past 15 years have seen crippling street protests both by his opponents and supporters that destabilized governments and hamstrung business.

Additional reporting by Panarat Thepgumpanat, Patpicha Tanakasempipat, Panu Wongcha-um; Editing by John Chalmers, Robert Birsel

Our Standards:The Thomson Reuters Trust Principles.

Continue Reading

topNews

Thousands attend NZ vigil, rally to fight racism, remember Christchurch victims

Published

on

By

CHRISTCHURCH (Reuters) – Thousands gathered in New Zealand’s cities on Sunday to protest racism and remember the 50 Muslims killed by a gunman in Christchurch and as Prime Minister Jacinda Ardern announced a national remembrance service to be held later this week.

People attend a vigil for victims of the mosque shootings in Christchurch, New Zealand March 24, 2019. REUTERS/Edgar Su

About 15,000 turned out for an evening vigil in Christchurch in a park near the Al Noor mosque, where a suspected white supremacist killed more than 40 of the victims. Several more people were killed at the nearby Linwood mosque.

Many non-Muslim women wore headscarves at the vigil, some made by members of Christchurch’s Muslim community, to show their support for those of Islamic faith as they had at similar events last week.

Ardern said on Sunday that a national remembrance service would be held on March 29 to honor the victims, most of whom were migrants or refugees.

“The service will be a chance to once again show that New Zealanders are compassionate, inclusive and diverse, and that we will protect those values,” Ardern said in a statement.

The prime minister has been praised for her leadership following the attack. She swiftly moved to denounce the incident as terrorism, toughen gun laws and express national solidarity with the victims and their families.

The vigil started with an Islamic prayer, followed by a reading of the names of the victims, which included students from the nearby Cashmere High School.

“Darkness cannot drive out darkness only light can,” Okirano Tilaia, one of the school’s pupils, told the crowd. “Hatred cannot drive out hatred, only love can.”

Earlier in the day more than 1,000 people marched in a rally against racism in central Auckland, carrying “Migrant lives matters” and “Refugees welcome here,” placards.

Muslims account for just over 1 percent of New Zealand’s 4.8-million population, a 2013 census showed, most of whom were born overseas.

As New Zealand continued to mourn and ask questions about how such an attack could have happened in the peaceful Pacific nation, the victims’ families spoke about their losses.

Shahadat Hossain, whose brother Mojammel Haque was killed in the attack, arrived in New Zealand on Saturday to bring his brother’s body back to Bangladesh.

“I can’t describe how I felt when I saw my brother’s lifeless body,” he told Reuters. “I was devastated.”

Farid Ahmed, who was at the Al Noor mosque when the shooting took place, escaped but his wife, Husna, was killed. On Sunday, he went door-to-door, thanking his neighbors for their support.

    “They came running… they were crying, they were in tears,” he said of his neighbors when they found out that Husna had died.

“That was a wonderful support and expression of love, and I am feeling that I should also take the opportunity to say to them that I also love them.”

Reporting by Jill Gralow Natasha Howitt, Charlotte Greenfield in Christchurch, Ruma Paul in Dhaka, James Redmayne and Tom Westbrook in Sydney; Writing by Lidia Kelly; Editing by Sam Holmes

Our Standards:The Thomson Reuters Trust Principles.

Continue Reading

topNews

Almost 400 people winched from stricken cruise liner off Norway

Published

on

By

OSLO (Reuters) – Rescue services had airlifted 397 people to safety from a luxury cruise liner with engine trouble off the coast of Norway by Sunday morning and were preparing to tow the vessel to a nearby port.

The Viking Sky, with 1,373 passengers and crew on board, sent out a mayday signal on Saturday as it drifted towards land in the Norwegian Sea.

The ship was carrying 915 passengers, of whom “a large number” were from the United States and Britain, according to the rescue services.

Some 17 injured passengers had been taken to hospital, a local rescue coordinator told a news conference early on Sunday, while others suffered minor cuts and bruises.

One was taken to St. Olav’s Hospital in the town of Trondheim, which is central Norway’s most advanced medical facility. Others were taken to local hospitals in the region.

“Many have also been traumatized by the experience and need care when they arrive on shore,” the Norwegian Red Cross said in a statement.

The airlift had gone on through the night. The ship has been able to restart three of its four engines on Sunday morning but still needed assistance.

“The evacuation continues at the request of the vessel … they need tugboats to get to port,” rescue service spokesman Per Fjeld said, adding that the plan was to bring the Viking Sky to the town of Molde.

Rescue services have begun to attach lines to the ship from tugboats to begin towing it towards the port.

BROKEN WINDOWS

Stormy weather conditions had improved in the early hours of Sunday, with winds blowing at 14 meters per second, down from 24 meters per second previously, according to the Norwegian Meteorological Institute. The wind speeds are expected to fall further during Sunday.

Images and film posted by passengers on social media showed furniture sliding around as the vessel drifted in waves of up to eight meters (26 feet), and passengers earlier described the ordeal.

Slideshow (3 Images)

“We were having lunch when it began to shake. Window panes were broken and water came in. It was just chaos. The trip on the helicopter, I would rather forget. It was not fun,” American passenger John Curry told public broadcaster NRK on Saturday.

The stretch of water known as Hustadvika and surrounding areas are known for fierce weather and shallow waters dotted with reefs.

Viking Cruises, which owns the ship, on Saturday said the safety of passengers was its top priority. The company was not immediately available for further comment on Sunday.

Reporting by Terje Solsvik and Gwladys Fouche; Editing by Jane Merriman/Keith Weir

Our Standards:The Thomson Reuters Trust Principles.

Continue Reading

Trending

%d bloggers like this: