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The Morningstar US Market Index Sees Biggest Annual Loss Since 2008

 
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US Market Index suffers biggest annual loss since 2008.

Description: Illustration of John Rekenthaler, vice president of research for Morningstar.

The Morningstar US Market Index experienced its worst annual loss since 2008, ending the year down 19.4%. This marks a significant downturn in the market and serves as a stark reminder of the importance of being aware of economic conditions when investing.

The Morningstar US Cyclical Super Sector Index measures the performance of stocks from the cyclical sectors, which are basic materials, consumer discretionary, consumer staples, energy, financials, healthcare, industrials, technology, and utilities. This index has seen a sharp decline in its value since the start of the year, a sign of the volatility in the markets.

Hi, I'm David Harrell with Morningstar Investment Management, and I'm here again with Dave Sekera, who is Morningstar's chief U.S. market strategist. Dave, what is the outlook for the US stock market in the near term?

Dave Sekera: It's been a volatile year for the US stock market. The Morningstar US Market Index ended the year down 19.4%, its biggest annual loss since 2008. U.S. stock market losses were moderated by a gain in technology stocks, which accounted for just under a third of the index's value.

Adam Sabban, senior manager research analyst, equity strategies and Ryan Jackson, manager research analyst for Morningstar Research Services LLC, both agree that the markets are currently in a state of flux. There is a lot of uncertainty surrounding the US economic recovery and investors should be aware of the risks associated with investing in the current climate.

Should investors just index? An illustrative image of John Rekenthaler, vice president of research for Morningstar.

Short Interest in iShares Morningstar Mid-Cap Value ETF (NASDAQ:IMCV) Expands By 28.7%. Sun., January 22, 2023 | MarketBeat.

Adam Sabban and Ryan Jackson both suggest that investors should not just index, but rather carefully consider their options when investing. In fact, Morningstar analysts say that investors are best served considering economic moats alongside valuation to get the best long-term results. Economic moats are the competitive advantages a company has over its rivals.

Guidici wrote in a recent blog post that Morningstar equity analysts see room for growth in a number of high-quality, defensive names. These include companies like PepsiCo, Visa, and Apple, which all have the potential to outperform the markets.

This is an increase from Morningstar's previous quarterly dividend of $0.36. Morningstar's dividend payout ratio is 52.63%. Morningstar Profile.

The Morningstar US Market Index ended the year down 19.4%, its biggest annual loss since 2008. U.S. stock market losses were moderated by a gain in technology stocks, which accounted for just under a third of the index's value. investors should be aware of the risks associated with investing in the current climate and should carefully consider their options when investing. Morningstar analysts suggest looking at economic moats alongside valuation to get the best long-term results.

Labels:
morningstarus market indexannual loss2008stockscyclical sectorsinvestors

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