The Top Investment Quotes Every Investor Should Know
Raw Text
Infographics
Published
1 year ago
on
March 11, 2022
By
Dorothy Neufeld
Tweet
Share
Share
This infographic is available as a poster .
This infographic is available as a poster .
Quotes can have lasting impressions. They can also tell a story.
From Warren Buffett to John Maynard Keynes, the financial greats offer insights that often last for decades. Not only have they lived through several market cycles, their understanding of the market is foundational to their success.
In this infographic from New York Life Investments , we distill five timeless investment quotes and explore the data behind their insight.
Top 5 Investment Quotes for Investors
What investment quotes can we learn from today?
1. “The most important quality for an investor is temperament, not intellect.”
— Warren Buffett, CEO of Berkshire Hathaway
Often, emotions influence trading activity. Consider how investors traded 10x more in the first quarter of 2020 than in 2009.
Here are three fear indicators that can lead to these trading spikes:
Volatility: Higher Cboe Volatility Index (VIX) reading indicates higher fear.
Stock Price Strength: A greater number of stocks reaching 52-week lows versus 52-week highs indicates higher fear.
Bond vs. Stock Performance: When bonds outperform, it can indicate higher fear.
Yet, in spite of extreme investor fear, the S&P 500 has proven resilient. The index had positive performance in 32 of the last 42 years.
2. “The individual investor should act consistently as an investor and not as a speculator.”
— Benjamin Graham, author of The Intelligent Investor
Benjamin Graham, the father of value investing, had an enormous influence on Warren Buffett. One of his many core insights includes recognizing the difference between an investor and a speculator:
Investor: Focused on safety of principal and reasonable return.
Speculator: At risk of losing potentially the entire principal.
Rather than seeing an investment as simply a ticker symbol, Graham says, think of an investment like having a partial ownership in a business.
When investors think like an owner, they look for the intrinsic value of the company in the long term, which can compound in value over time.
3. “The biggest risk of all is not taking one.”
— Mellody Hobson, co-CEO of Ariel Investments
Mellody Hobson, co-CEO of Chicago-based Ariel Investments, became president at just 31. Today, Ariel manages over $18 billion in assets. As the head of two major firms (she is also chairwoman of Starbucks), Hobson understood the importance of taking the first step.
We show an example of a potential benefit of starting early:
As the above table shows, Investor A contributed just $24,000, outperforming Investor B—who contributed 3x more ($72,000) over their lifetime. By age 65, Investor A’s portfolio value was worth nearly $300,000 while Investor B’s stood at $245,000.
Investing early is especially timely given today’s inflationary environment . Over time, inflation erodes the value of the dollar and, in turn, a person’s overall wealth.
4. “Time in the market beats timing the market.”
— Ken Fisher, founder of Fisher Investments
If an investor tried to time the market and missed the best performing days over the last century, they would have earned just a fraction of the total returns. Staying invested led to over 17,000% returns, yet missing the 10 best days over each decade led to returns of just 28%:
Source: Bank of America, S&P 500 returns (Mar 2021)
Historically, the biggest drops in the market often happen just before the largest upswings, meaning that opportunities can be easily missed.
Even the top investors have trouble timing the market at every turn.
5. “It is better to be roughly right than precisely wrong.”
— John Maynard Keynes, father of modern macroeconomics
When markets are volatile , diversification can help investors temper its effects. Consider the following example that shows the advantages of diversification.
Source: Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; Robert Shiller, Strategas/Ibbotson, US Federal Reserve (2021)
When investors blended stocks and bonds in their portfolios over a one year period, the downside was sharply reduced.
Source: Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; Robert Shiller, Strategas/Ibbotson, US Federal Reserve (2021)
Meanwhile, over the last seven decades, a combination of stocks and bonds has never produced a negative return across a five-year rolling period.
Learning from Historical Insight
The above five investment quotes can arm investors with investing lessons that often are easy to forget:
React logically, not emotionally
Leverage compound interest
Start early
Stay invested
Diversify
With insights drawn from those who have shaped the financial world, investors can better position their portfolios for success.
ADVISOR NEWSLETTER Subscribe
Tweet
Share
Share
Related Topics:
benjamin graham diversification investing lessons long-term investing market volatility ownership mindset s&p 500 historical performance timing the market warren buffett
Up Next How Rising Interest Rates Impact the Economy and Your Portfolio
Don't Miss The Inflation Rate in the U.S.: Past, Present, and Future
Continue Reading
You may like
What is the Success Rate of Actively Managed Funds?
Dove vs. Hawk: The Financial Conditions Index
How Experts Think About Bear Market Opportunities
Four Tips to Protect Portfolios in a Rising Rate Environment
Visualizing Asset Class Correlation Over 25 Years (1996-2020)
U.S. Elections: Charting Patterns in Market Volatility
Comments
Infographics
Visual Guide: The Three Types of Economic Indicators
From GDP to interest rates, this infographic shows key economic indicators for navigating the massive U.S. economy.
Published
6 months ago
on
December 23, 2022
By
Dorothy Neufeld
View the high resolution version of this infographic. Buy the poster .
A Visual Guide to Economic Indicators
Economic indicators provide insight on the state of financial markets.
Each type of indicator offers data and economic measurements, helping us better understand their relationship to the business cycle. As investors navigate the market environment, it’s important to differentiate between the three main types of indicators:
Leading
Coincident
Lagging
The above infographic from New York Life Investments shows a road map of indicators and what they can tell us about the economy.
What’s Ahead: Leading Indicators
Leading indicators present economic data that point to the future direction of the economy like a sign up ahead. Here are three examples.
1. Consumer Confidence Index
This key measure indicates consumer spending and saving plans. When the index is above 100, consumers may spend more over the next year. In December, the index jumped to 108 up from 101 in November. This was in part due to lower inflation expectations and improving job prospects.
In the December survey, 48% indicated that the job market remained strong, highlighting the strength of employment opportunities and likely influencing sentiment towards spending in the future.
2. ISM Purchasing Managers Index
The ISM Purchasing Managers Index indicates expectations of new orders, costs, employment, and U.S. economic activity in the manufacturing sector. The following table shows how the index is broken down based on select measures:
For instance, in November the index fell into its first month of contraction since May 2020. Falling new orders signal that demand has weakened while contracting employment figures indicate lower output across the sector.
3. S&P 500 Index
The S&P 500 Index indicates the economy’s direction since forward-looking performance is factored into prices. In this way, the S&P 500 Index can represent investor confidence as the index often serves as a proxy for U.S. equity markets. In 2022, returns for the index are roughly -20% year-to-date.
Current Conditions: Coincident Indicators
Coincident indicators reflect the current state of the economy, showing whether it is in a state of growth or contraction .
1. GDP
GDP indicates overall economic performance. Typically it serves as the most comprehensive gauge of the economy since it tracks output across all sectors. In the third quarter of 2022, real U.S. GDP increased 2.9% on an annual basis. That compares to 2.7% for the same period in 2021.
2. Personal Income
Rising incomes indicate a healthier economy and falling incomes signal slower growth. Personal income grew at record levels in 2021 to 7.4% annually amid a rapid economic expansion.
This year, U.S. personal income has grown at a slower pace, at 2.7% on an annual basis as of the third quarter.
3. Industrial Production Index
Strongly correlated to GDP, the industrial production index indicates manufacturing, utilities, and mining output. Below, we show trends in industrial production and how they correspond with GDP and personal income indicators.
*As of Q3 2022.
As the above table shows, factory production collapsed following the 2008 financial crisis, a key indicator for the depth of an economic downturn. Meanwhile, personal income sank over -3% while GDP fell -2%.
Despite economic uncertainty in 2022, industrial production remains positive, at a 4.7% growth rate, albeit somewhat slower than 2021 levels.
Rearview Mirror: Lagging Indicators
Like checking your back mirror, lagging indicators take place after a key economic event, often confirming what has taken place in the economy. Here are three key examples.
1. Interest Rates
Often, interest rates respond to changes in inflation. When rates rise it can slow economic growth and discourage borrowing. Rising interest rates typically signal a strong economy and are used to tame inflation. On the other hand, low interest rates promote economic growth.
Following years of record-low interest rates, the Federal Funds rate increased at the fastest rate in decades over 2022, jumping from 0.25% in March to 4.25% in December as inflation accelerated.
2. Consumer Price Index
This inflation measure can indicate cash flow for households. Inflation is often the result of rising input costs and increasing money supply across the economy.
Sometimes, inflation can reach a peak after an expansion has ended as rising demand in an economy has pushed up prices. In November, U.S. inflation reached 7.1% annually amid supply chain disruptions and price pressures across food prices, medical prices, and housing costs.
*As of November 2022.
3. Unemployment Rate
The unemployment rate has many spillover effects, impacting consumer spending and in turn retail sales and GDP. Historically, unemployment falls slowly after an economic recovery which is why it’s considered a lagging indicator. When the unemployment rate rises it confirms lagging economic performance.
Overall, 2022 has been characterized by a strong job market, with unemployment levels below historical averages, at 3.7% as of October.
On the Road
To get a more comprehensive picture of the economy, combining a number of indicators is more effective than isolating a few variables. With these tools, investors can gain more perspective on the cyclical nature of the business cycle while keeping a long-term perspective in mind on the road ahead.
ADVISOR NEWSLETTER Subscribe
Tweet
Share
Share
Continue Reading
Infographics
Europe’s Energy Crisis and the Global Economy
Europe’s energy crisis could last well into 2023. Here’s how the energy shock is causing ripple effects across the broader economy.
Published
6 months ago
on
December 3, 2022
By
Dorothy Neufeld
This infographic is available as a poster .
Europe’s Energy Crisis and the Global Economy
Volatile energy prices are squeezing household costs and business productivity in Europe.
While energy prices have fallen in recent months, several factors could influence price volatility looking ahead:
Russia slashing energy supplies
Rising winter heating demand
Shrinking European storage facilities
In the above infographic from New York Life Investments , we show the potential impacts of Europe’s energy crisis on consumers, businesses, and the wider global economy.
1. Impact on Consumers
Energy plays a central role in overall inflation . Here’s how it factors into the consumption baskets of various countries:
Source: OECD (Oct 2022). Annual inflation is measured by the Consumer Price Index.
As the above table shows, energy makes up nearly half of consumer price inflation in Germany. In the U.S., it contributes to about one-fifth of overall inflation.
Amid energy supply disruptions, U.S. winter heating costs are projected to rise to the highest level in a decade. As heating costs rise, it could impact consumer spending on discretionary items across the economy, along with other essential household bills.
2. Impact on Business
Natural gas and petroleum are key components in many industries’ energy consumption. As a result, the recent rise in energy prices is adding significant cost pressures to operations.
Below, we show how four primary sectors use energy, by source:
Source: EIA (Apr 2022). Figures represent end-use sector energy consumption in 2021.
In Europe, soaring energy prices have led to production declines in energy-sensitive industries over recent months. As a ripple effect, European fertilizer production capacity has decreased as much as 70% , crude steel capacity has fallen 10%, and aluminum and zinc production capacity has sunk 50%.
In response, some companies may move production out of Europe to regions with lower energy prices. This occurred in 2010-2014 amid high European energy prices, where companies relocated to the U.S., the Middle East, and North Africa.
3. Impact on the Economy
While the energy crisis is having devastating effects on many countries, some markets like the U.S. are more sheltered from the impact. As seen in the table below, the U.S. produces virtually all of its natural gas. Figures are shown in trillion cubic feet.
Source: EIA (Sep 2022).
By contrast, Europe imports 80% of its natural gas, primarily from Russia, North Africa, and Norway. Not only that, natural gas imports have increased over the last decade, up from 65% of total supplies in 2010.
Meanwhile, the energy sector is seeing strong returns supported by higher oil and natural gas prices, along with key fuel shortages as Russia constricts supplies to Europe. In November the S&P 500 Energy Index was up 65% year-to-date compared to the broader index, with -17% returns.
Europe’s Energy Crisis: Looking Ahead
Given the complex geopolitical environment, Europe’s energy crisis could last well into 2023, driven by many factors:
Rising demand from China post-COVID-19 lockdowns
Lower European fuel reserves
Inadequate energy infrastructure in the medium-term
The good news is that European government relief has reached €674 billion ($690 billion) to cushion the effect on households and businesses.
However, this has additional challenges as increasing money supply may be an inflationary force.
Amid market volatility, investors can avoid getting caught up in short-term market movements and stay focused on their long-term strategic allocation.
ADVISOR NEWSLETTER Subscribe
Tweet
Share
Share
Continue Reading
Subscribe
Are you a financial advisor ?
Subscribe here to get every update, including when new charts or infographics go live:
Email address
Social
Popular
Markets in a Minute 3 years ago Visualizing the 200-Year History of U.S. Interest Rates
Markets in a Minute 2 years ago Visualizing the History of U.S. Inflation Over 100 Years
Markets in a Minute 3 years ago Visualizing the Hierarchy of Financial Needs
Markets in a Minute 11 months ago Mapped: The Growth in U.S. House Prices by State
Markets in a Minute 9 months ago How Closely Related Are Historical Mortgage Rates and Housing Prices?
Markets in a Minute 7 months ago Mapped: Global Energy Prices, by Country in 2022
Infographics 2 years ago The 5 Fastest Growing Industries of the Next Decade
Infographics 8 months ago A Visual Guide to Stagflation, Inflation, and Deflation
Single Line Text
Infographics. Published. 1 year ago. on. March 11, 2022. By. Dorothy Neufeld. Tweet. Share. Share. Reddit. Email. This infographic is available as a poster . This infographic is available as a poster . Quotes can have lasting impressions. They can also tell a story. From Warren Buffett to John Maynard Keynes, the financial greats offer insights that often last for decades. Not only have they lived through several market cycles, their understanding of the market is foundational to their success. In this infographic from New York Life Investments , we distill five timeless investment quotes and explore the data behind their insight. Top 5 Investment Quotes for Investors. What investment quotes can we learn from today? 1. “The most important quality for an investor is temperament, not intellect.” — Warren Buffett, CEO of Berkshire Hathaway. Often, emotions influence trading activity. Consider how investors traded 10x more in the first quarter of 2020 than in 2009. Here are three fear indicators that can lead to these trading spikes: Volatility: Higher Cboe Volatility Index (VIX) reading indicates higher fear. Stock Price Strength: A greater number of stocks reaching 52-week lows versus 52-week highs indicates higher fear. Bond vs. Stock Performance: When bonds outperform, it can indicate higher fear. Yet, in spite of extreme investor fear, the S&P 500 has proven resilient. The index had positive performance in 32 of the last 42 years. 2. “The individual investor should act consistently as an investor and not as a speculator.” — Benjamin Graham, author of The Intelligent Investor. Benjamin Graham, the father of value investing, had an enormous influence on Warren Buffett. One of his many core insights includes recognizing the difference between an investor and a speculator: Investor: Focused on safety of principal and reasonable return. Speculator: At risk of losing potentially the entire principal. Rather than seeing an investment as simply a ticker symbol, Graham says, think of an investment like having a partial ownership in a business. When investors think like an owner, they look for the intrinsic value of the company in the long term, which can compound in value over time.. 3. “The biggest risk of all is not taking one.” — Mellody Hobson, co-CEO of Ariel Investments. Mellody Hobson, co-CEO of Chicago-based Ariel Investments, became president at just 31. Today, Ariel manages over $18 billion in assets. As the head of two major firms (she is also chairwoman of Starbucks), Hobson understood the importance of taking the first step. We show an example of a potential benefit of starting early: As the above table shows, Investor A contributed just $24,000, outperforming Investor B—who contributed 3x more ($72,000) over their lifetime. By age 65, Investor A’s portfolio value was worth nearly $300,000 while Investor B’s stood at $245,000. Investing early is especially timely given today’s inflationary environment . Over time, inflation erodes the value of the dollar and, in turn, a person’s overall wealth. 4. “Time in the market beats timing the market.” — Ken Fisher, founder of Fisher Investments. If an investor tried to time the market and missed the best performing days over the last century, they would have earned just a fraction of the total returns. Staying invested led to over 17,000% returns, yet missing the 10 best days over each decade led to returns of just 28%: Source: Bank of America, S&P 500 returns (Mar 2021) Historically, the biggest drops in the market often happen just before the largest upswings, meaning that opportunities can be easily missed. Even the top investors have trouble timing the market at every turn. 5. “It is better to be roughly right than precisely wrong.” — John Maynard Keynes, father of modern macroeconomics. When markets are volatile , diversification can help investors temper its effects. Consider the following example that shows the advantages of diversification. Source: Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; Robert Shiller, Strategas/Ibbotson, US Federal Reserve (2021) When investors blended stocks and bonds in their portfolios over a one year period, the downside was sharply reduced. Source: Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; Robert Shiller, Strategas/Ibbotson, US Federal Reserve (2021) Meanwhile, over the last seven decades, a combination of stocks and bonds has never produced a negative return across a five-year rolling period. Learning from Historical Insight. The above five investment quotes can arm investors with investing lessons that often are easy to forget: React logically, not emotionally. Leverage compound interest. Start early. Stay invested. Diversify. With insights drawn from those who have shaped the financial world, investors can better position their portfolios for success. ADVISOR NEWSLETTER Subscribe. Tweet. Share. Share. Reddit. Email. Related Topics: benjamin graham diversification investing lessons long-term investing market volatility ownership mindset s&p 500 historical performance timing the market warren buffett. Up Next How Rising Interest Rates Impact the Economy and Your Portfolio. Don't Miss The Inflation Rate in the U.S.: Past, Present, and Future. Continue Reading. You may like. What is the Success Rate of Actively Managed Funds? Dove vs. Hawk: The Financial Conditions Index. How Experts Think About Bear Market Opportunities. Four Tips to Protect Portfolios in a Rising Rate Environment. Visualizing Asset Class Correlation Over 25 Years (1996-2020) U.S. Elections: Charting Patterns in Market Volatility. Comments. Infographics. Visual Guide: The Three Types of Economic Indicators. From GDP to interest rates, this infographic shows key economic indicators for navigating the massive U.S. economy. Published. 6 months ago. on. December 23, 2022. By. Dorothy Neufeld. View the high resolution version of this infographic. Buy the poster . A Visual Guide to Economic Indicators. Economic indicators provide insight on the state of financial markets. Each type of indicator offers data and economic measurements, helping us better understand their relationship to the business cycle. As investors navigate the market environment, it’s important to differentiate between the three main types of indicators: Leading. Coincident. Lagging. The above infographic from New York Life Investments shows a road map of indicators and what they can tell us about the economy. What’s Ahead: Leading Indicators. Leading indicators present economic data that point to the future direction of the economy like a sign up ahead. Here are three examples. 1. Consumer Confidence Index. This key measure indicates consumer spending and saving plans. When the index is above 100, consumers may spend more over the next year. In December, the index jumped to 108 up from 101 in November. This was in part due to lower inflation expectations and improving job prospects. In the December survey, 48% indicated that the job market remained strong, highlighting the strength of employment opportunities and likely influencing sentiment towards spending in the future. 2. ISM Purchasing Managers Index. The ISM Purchasing Managers Index indicates expectations of new orders, costs, employment, and U.S. economic activity in the manufacturing sector. The following table shows how the index is broken down based on select measures: For instance, in November the index fell into its first month of contraction since May 2020. Falling new orders signal that demand has weakened while contracting employment figures indicate lower output across the sector. 3. S&P 500 Index. The S&P 500 Index indicates the economy’s direction since forward-looking performance is factored into prices. In this way, the S&P 500 Index can represent investor confidence as the index often serves as a proxy for U.S. equity markets. In 2022, returns for the index are roughly -20% year-to-date. Current Conditions: Coincident Indicators. Coincident indicators reflect the current state of the economy, showing whether it is in a state of growth or contraction . 1. GDP. GDP indicates overall economic performance. Typically it serves as the most comprehensive gauge of the economy since it tracks output across all sectors. In the third quarter of 2022, real U.S. GDP increased 2.9% on an annual basis. That compares to 2.7% for the same period in 2021. 2. Personal Income. Rising incomes indicate a healthier economy and falling incomes signal slower growth. Personal income grew at record levels in 2021 to 7.4% annually amid a rapid economic expansion. This year, U.S. personal income has grown at a slower pace, at 2.7% on an annual basis as of the third quarter. 3. Industrial Production Index. Strongly correlated to GDP, the industrial production index indicates manufacturing, utilities, and mining output. Below, we show trends in industrial production and how they correspond with GDP and personal income indicators. *As of Q3 2022. As the above table shows, factory production collapsed following the 2008 financial crisis, a key indicator for the depth of an economic downturn. Meanwhile, personal income sank over -3% while GDP fell -2%. Despite economic uncertainty in 2022, industrial production remains positive, at a 4.7% growth rate, albeit somewhat slower than 2021 levels. Rearview Mirror: Lagging Indicators. Like checking your back mirror, lagging indicators take place after a key economic event, often confirming what has taken place in the economy. Here are three key examples. 1. Interest Rates. Often, interest rates respond to changes in inflation. When rates rise it can slow economic growth and discourage borrowing. Rising interest rates typically signal a strong economy and are used to tame inflation. On the other hand, low interest rates promote economic growth. Following years of record-low interest rates, the Federal Funds rate increased at the fastest rate in decades over 2022, jumping from 0.25% in March to 4.25% in December as inflation accelerated. 2. Consumer Price Index. This inflation measure can indicate cash flow for households. Inflation is often the result of rising input costs and increasing money supply across the economy. Sometimes, inflation can reach a peak after an expansion has ended as rising demand in an economy has pushed up prices. In November, U.S. inflation reached 7.1% annually amid supply chain disruptions and price pressures across food prices, medical prices, and housing costs. *As of November 2022. 3. Unemployment Rate. The unemployment rate has many spillover effects, impacting consumer spending and in turn retail sales and GDP. Historically, unemployment falls slowly after an economic recovery which is why it’s considered a lagging indicator. When the unemployment rate rises it confirms lagging economic performance. Overall, 2022 has been characterized by a strong job market, with unemployment levels below historical averages, at 3.7% as of October. On the Road. To get a more comprehensive picture of the economy, combining a number of indicators is more effective than isolating a few variables. With these tools, investors can gain more perspective on the cyclical nature of the business cycle while keeping a long-term perspective in mind on the road ahead. ADVISOR NEWSLETTER Subscribe. Tweet. Share. Share. Reddit. Email. Continue Reading. Infographics. Europe’s Energy Crisis and the Global Economy. Europe’s energy crisis could last well into 2023. Here’s how the energy shock is causing ripple effects across the broader economy. Published. 6 months ago. on. December 3, 2022. By. Dorothy Neufeld. This infographic is available as a poster . Europe’s Energy Crisis and the Global Economy. Volatile energy prices are squeezing household costs and business productivity in Europe. While energy prices have fallen in recent months, several factors could influence price volatility looking ahead: Russia slashing energy supplies. Rising winter heating demand. Shrinking European storage facilities. In the above infographic from New York Life Investments , we show the potential impacts of Europe’s energy crisis on consumers, businesses, and the wider global economy. 1. Impact on Consumers. Energy plays a central role in overall inflation . Here’s how it factors into the consumption baskets of various countries: Source: OECD (Oct 2022). Annual inflation is measured by the Consumer Price Index. As the above table shows, energy makes up nearly half of consumer price inflation in Germany. In the U.S., it contributes to about one-fifth of overall inflation. Amid energy supply disruptions, U.S. winter heating costs are projected to rise to the highest level in a decade. As heating costs rise, it could impact consumer spending on discretionary items across the economy, along with other essential household bills. 2. Impact on Business. Natural gas and petroleum are key components in many industries’ energy consumption. As a result, the recent rise in energy prices is adding significant cost pressures to operations. Below, we show how four primary sectors use energy, by source: Source: EIA (Apr 2022). Figures represent end-use sector energy consumption in 2021. In Europe, soaring energy prices have led to production declines in energy-sensitive industries over recent months. As a ripple effect, European fertilizer production capacity has decreased as much as 70% , crude steel capacity has fallen 10%, and aluminum and zinc production capacity has sunk 50%. In response, some companies may move production out of Europe to regions with lower energy prices. This occurred in 2010-2014 amid high European energy prices, where companies relocated to the U.S., the Middle East, and North Africa. 3. Impact on the Economy. While the energy crisis is having devastating effects on many countries, some markets like the U.S. are more sheltered from the impact. As seen in the table below, the U.S. produces virtually all of its natural gas. Figures are shown in trillion cubic feet. Source: EIA (Sep 2022). By contrast, Europe imports 80% of its natural gas, primarily from Russia, North Africa, and Norway. Not only that, natural gas imports have increased over the last decade, up from 65% of total supplies in 2010. Meanwhile, the energy sector is seeing strong returns supported by higher oil and natural gas prices, along with key fuel shortages as Russia constricts supplies to Europe. In November the S&P 500 Energy Index was up 65% year-to-date compared to the broader index, with -17% returns. Europe’s Energy Crisis: Looking Ahead. Given the complex geopolitical environment, Europe’s energy crisis could last well into 2023, driven by many factors: Rising demand from China post-COVID-19 lockdowns. Lower European fuel reserves. Inadequate energy infrastructure in the medium-term. The good news is that European government relief has reached €674 billion ($690 billion) to cushion the effect on households and businesses. However, this has additional challenges as increasing money supply may be an inflationary force. Amid market volatility, investors can avoid getting caught up in short-term market movements and stay focused on their long-term strategic allocation. ADVISOR NEWSLETTER Subscribe. Tweet. Share. Share. Reddit. Email. Continue Reading. Subscribe. Are you a financial advisor ? Subscribe here to get every update, including when new charts or infographics go live: Email address. Social. Facebook. LinkedIn. Pinterest. Twitter. Popular. Markets in a Minute 3 years ago Visualizing the 200-Year History of U.S. Interest Rates. Markets in a Minute 2 years ago Visualizing the History of U.S. Inflation Over 100 Years. Markets in a Minute 3 years ago Visualizing the Hierarchy of Financial Needs. Markets in a Minute 11 months ago Mapped: The Growth in U.S. House Prices by State. Markets in a Minute 9 months ago How Closely Related Are Historical Mortgage Rates and Housing Prices? Markets in a Minute 7 months ago Mapped: Global Energy Prices, by Country in 2022. Infographics 2 years ago The 5 Fastest Growing Industries of the Next Decade. Infographics 8 months ago A Visual Guide to Stagflation, Inflation, and Deflation.