Problem
Read the Wall Street Journal (WSJ) Dec 2015 Article: "20151231_U.S. Stocks Post Worst Annual Losses Since 2008 - WSJ."
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Discuss the following:
i. U.S. stocks had their worst annual performance since 2008, closing out a rocky year that tempered investors' expectations for gains in 2016. Which U.S. index actually rose in 2015? Which sector led the S&P500 with an 8.4% gain?
ii. How would you explain the performance of this index and of this sector?
iii. Why would stocks falling in 2015 temper investors' expectations for gains in 2016?
iv. The S&P500 fell 0.7% for 2015 but provided a 1.38% return including dividends. Which number should investors care more about and why?