The S&P 500 kick started a busy week for third-quarter earnings on Monday, by securing its 56th record close of the year, reflecting a stunning 21.6% gain already for 2021.
Market Watch state that ”even more dramatically, the new high-water mark means the S&P 500 has now more than doubled since the worst of last year’s pandemic-induced meltdown, signifying a 104.1% gain from its bear-market low of 2,237.40 set on March 23, 2020, according to Dow Jones Market Data.”
Despite its strong gains, the market’s record-setting ways could still stick around for some time, according to Ryan Detrick, chief market strategist at LPL Financial, who stated why there are several reasons, including seasonal and economic factors, that indicate the S&P 500 could continue its rapid climb.
To start, there already was “a sort of stealth correction” this summer, where even while the S&P 500 has gained 8% since the end of April, the average individual stock in the benchmark actually endured a more-than-10% correction, Detrick said Monday in emailed commentary.
However, late October often marks the historical low before stocks typically rally into year’s end.
“In fact, the fourth quarter as a whole is by far the strongest quarter historically, on average, with the S&P 500 rising 4% and finishing higher nearly 80% of the time,” Detrick wrote. “November, meanwhile, is the strongest month of the year – both since 1950 and over the past decade.”
Source: Market Watch
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