10 Stats About The Last 10 Years

 Tyler Durden's picture 

By Nick Colas of Convergex

10 Stats About The Last 10 Years

The headline this week that Goldman Sachs’ stock has gone nowhere for a decade got us thinking about general market performance over the last 10 years. The key contours are straightforward: subpar price returns (a 4.9% compounded annual growth rate for the S&P 500) with increased volatility (a VIX that is 25% more volatile than average).  From there, things get funky.  Consumer Discretionary – not Tech or Health Care – is the top performing sector, up 137% over the decade, in no small part due to Amazon (up 1,600% over the period and in the S&P 500 since 2005). Only one sector is down over this timeframe: Financials, 28% lower (making Goldman an outperformer in its sector, funny enough).  And gold (up 87%) has trounced stocks (S&P 500 up 62%).  There’s more, and in this note we also look for where some of these anomalies may revert to a longer run mean.
Think back over the last 10 years – how different was your life in April 2006?  While you may think your daily existence is largely the same (maybe the kids are older or you’re married now, but that about it…), consider what was actually different about your life in the spring of 2006:
  • No iPhone. Steve Jobs unveiled the first iPhone in January 2007, and it didn’t ship until June of that year.
  • No Facebook (unless you were in college at the time). Facebook only opened to the general population in September 2006.
  • No Twitter. The full version of the product launched in July 2006.
  • No Instagram. The picture sharing site only launched in 2010.
  • No Kim Kardashian. “Keeping up With The Kardashians” debuted in October 2007.
  • No Uber. The company received its seed funding in 2009.
  • No iPad. Apple started taking pre-orders on the first-gen product in March 2010.
It feels like April 2006 demarcates the last days of some Dark Age, or at least a simpler time without the manifold distractions of today.  And while you might opt for a world without the Kardashians, imagine it without your smartphone, Facebook/social media, and an iPad to entertain the kids (or yourself). It’s ok – don’t panic. You have them now.

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