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European Markets, Risky Stocks & Viewer Mailbag

Episode 73

Updated: April 10, 2017

We start by looking at the precarious position of European stock markets. Next we explore new evidence that shows that stock picking is fraught with even more risk than many investors might realize. Last up is our latest "ETV viewer Mailbag."

Show Notes:

Features in this episode:

  • 3 Must-See Charts: Learn What's Next for Europe (start time - 00:23)
  • "Saying Stocks Are Risky is an Understatement" (start time - 06:30)
  • You Asked. We Answered. (April Video "Mailbag" Episode.) (start time - 09:45)

Most individual stocks perform poorly, while a small number perform exceptionally well. The skew is vividly illustrated in the chart [above], which shows the returns of 54,015 non-overlapping samples of 10 year holding periods for individual stocks.

The majority of stocks in the sample underperformed cash. Almost half suffered negative returns. A surprisingly large percentage went all the way down to zero. The only reason the market as a whole performed well was because a small number of "superstocks" generated outsized returns. ... To say that individual stocks are "risky", then, is an understatement. They're enormously risky. - Philosophicaleconomics.com (April 2017)

Elliott Wave Weekly

With our Elliott Wave Weekly podcast, you'll get a roundup of the best market insights and Elliott wave analysis from interviews, presentations and webinars with our researchers and analysts at Elliott Wave International. And, best of all, you can download or listen online (it's free).

Alexandra Lienhard is the host of the popular podcast Elliott Wave Weekly. She is also the Chief Correspondent for ElliottWaveTV, a channel dedicated to providing the latest information from key Elliott Wave Analysts. Alexandra has been working with Elliott Wave International since 2009. Before that she worked for CNN in their Atlanta headquarters and on their entertainment desk in Los Angeles. Alexandra graduated from the University of Southern California with degrees in Broadcast Journalism and Business.