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Three reasons you should own stocks now
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Monday, October 10, 2011
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From Frank Holmes of U.S. Global Investors:
As we began last quarter, we asked: "Is the market set to take off?" In a world full of uncertainty during the third quarter, global investors gave a definitive answer: No.
U.S. stock markets suffered through the worst quarter since 2008, with the S&P 500 Index dropping nearly 14 percent for the quarter; more than half of this drop occurred in September alone. Only 54 companies in the S&P 500 saw positive returns during the month, while more than 200 dropped at least 20 percent, TheStreet.com reports.
The third quarter's carnage was ubiquitous and almost universal. Only three out of 94 country indices (Venezuela, Tunisia, and Jamaica) were positive in U.S. dollar terms during the quarter, according to Bloomberg. The average return for the 9,402 mutual funds tracked by Morningstar was a negative 17.8 percent for the quarter. According to Lipper, international-stock and emerging markets funds dropped 20.5 percent and 23 percent for the quarter, respectively. The selloff sent investors clamoring for the exits, withdrawing more than $60 billion from U.S. stock funds during the quarter, which exacerbated the declines.
Amid this negativity, a new question arises: Can markets find the road back to positive territory?
This week, we'd like to point out three reasons investors should consider remaining in equities or reassessing whether to sit on the sidelines...
Read full article...
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