November's stock market history:
Bottom Line: The trailing twelve months have been a cumulative year for the ages. We've had an incredible 17% run in the S&P 500 since the election and a 30%+ ride for the Nasdaq. As we enter November - we seasonally enter the most favorable stretch of the year for stocks historically. Since 1950, November has been the 2nd best month of the year for stock market performance. Only December has been better. Here are a couple of notes:
Stocks have been higher 66% percent of the time
The average rate of return 1.4%
That's a pretty strong historical track record. What's interesting is that while it's been the 2nd best month for stocks - isn't hasn't been as volatile as many other months. There's only been one year, 1973, with a double-digit decline and only two years of a double-digit increase 1980 & 1962. Of course, last year was a strong month from the 9th on after the election. The momentum that's been built on the 3% growth economy, resilient 3rd quarter earnings season and hope for tax reform has paved a path for the markets if the good news continues. That is an if though... Especially as it pertains to tax reform. More to come...