Weekend Reading: A Few Charts to Remember Before You Jump to Conclusions

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading factual economic charts Weekend reading factual economic charts
Weekend Reading

Amidst news headlines warning of a recession, detrimental economic conditions and market volatility, here are a few factual items to keep in mind:


📌 The S&P is not the U.S. economy: While in some aspects they can reflect one another, the S&P is more focused on “the manufacture and sale of goods.”

📌 Most companies usually beat estimates: In the grand scheme of returns, though, “‘better-than-expected’ has lost its meaning.’”

📌 Don’t expect average returns: On average, the stock market does return eight to ten percent each year; however, this rarely happens in a given year.

📌 Analysts never nail forecasts: Estimates will be revised (whether up or down), again and again.

📌 P/E ratios won’t tell you what happens next year: Whether high or low, P/E ratios are too scattered across the board to signal any relationship with the following year.

📌 There are lots of layoffs every month: Even during booming economic times, layoffs happen.

Look beyond the clickbait and remember: Success as an investor will have little to do with what makes CNBC News on a day-to-day basis.