S&P 500 Hints at Big Gains Ahead
The stock market is off to a roaring start in 2024, and with the S&P 500 on track for its fifth consecutive monthly gain, history suggests we could be in for a very good year.
Here's why investors should be optimistic:
Rare Feat, Big Gains:Â This kind of five-month winning streak for the S&P 500 has only happened once this decade (in 2013), and according to the Stock Trader's Almanac, it's a golden opportunity. In the past 11 times this has occurred since 1950, the index has actually risen during the remaining months of the year, averaging a healthy 12% gain!
Second-Year Bull Market Magic:Â Statistics are on our side. Historically, the second year of a bull market tends to be strong, and with our bull run extending through October this year, there's reason to believe the positive momentum will continue.
New Highs, New Opportunities:Â The S&P 500 hit a record high back in January, and traditionally, the market performs well following such milestones.
Momentum May Outlast Skepticism:Â While some analysts might be cautious about how much further stocks can climb after such a rapid rise, history shows that strong momentum can carry on for longer than expected. Just look at the late 1990s bull market, fueled by the internet boom, which has echoes in today's exciting world of artificial intelligence.
The Takeaway
While past performance isn't a guarantee of future results, the signs are pointing towards a positive year for the stock market. So buckle up and get ready for a potentially wild ride – one that could see significant gains for the S&P 500. Remember, this is just one perspective, and it's always wise to do your own research before making any investment decisions or reach out to me to incorporate this into your overall plan.
If you haven't checked out my PennyWise Financial Podcast, watch a clip from an episode recorded this year on Valentine's day. I take a look at the market performance, positioning and talk about patience paying off big time! It's all about setting expectations.
Scroll down a little past the clip to watch the entire episode. It's available on all major podcast platforms like Apple Podcasts, YouTube Music, Spotify, Amazon Music, and YouTube.
👇Or click below to watch the full Episode
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