S&P was noticeably disappointing throughout the majority of last year finishing at a meagre 2044 (1 percent down from last year). Here are some of the reasons why this happened:
Why S&P didn’t flourish in 2015:
The commodities weakness:
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Disappearance of the earnings growth:
There was an everlasting weakness in the profits at the corporate level and this has not been dealt with by the investors since 2009. During the second and third halves of the year, the index posted many declines in the earnings and it’s predicted by some prudent experts that towards the final quarter there are going to be even more declines (Note that the fourth quarter results will be shared in the beginning of the New Year). If we see a consistent 3 quarter earnings decline, this would have happened after 6 years.
New entrants:
New entrants often have interesting effects on the index and during 2015, there were some well-known stocks that were able to make it to the top 500. This is not something that we see every year.
While there were evident pitfalls, it is hoped (and not expected) that the fourth quarter might give good news to us.