2021 delivered another stellar year in US stock markets. The S&P 500 index, a commonly used benchmark to measure the US stock market, generated 26.9% excluding dividends[i]. The index hit 70 new all-time highs, the second highest on record since 1995 when the market hit 77 all-time highs[ii]. This is also the third consecutive year with double-digit gains. Surely all of this sounds ideal for investors. However, a look under the hood reveals some of the nuances of how the returns were generated and likely reveals a hidden risk for which investors should be aware. To continue reading click on the following link: The Hidden Risk in the Stock Market
[i] FactSet
[ii] Ned Davis Research Benchmark Review January 2022: Stocks climb ultimate wall of worry