December's merry stock market history:
Bottom Line: The trailing twelve months have been a cumulative year for the ages. We've had an incredible 18%+ run in the S&P 500 since the election and a 30%+ ride for the Nasdaq. As we enter December we welcome the most favorable month of the year for stocks historically. Since 1950, December has been the best month of the year for stock market performance. Here are a couple of notes:
Stocks have been higher 75% percent of the time
The average rate of return: 1.54%
That's a pretty solid track record. What's interesting is that while it's been the best month for stocks - isn't hasn't been as volatile as many other months. It's also notable that we almost never have a significantly negative month in December. Only once, 2002, did we have a 5% or greater decline for the month.
The momentum that's been built on the 3%+ growth economy, resilient 3rd quarter earnings 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 but for now everything's coming up roses with the economy, especially after yesterday's upward revision that demonstrated that the economy actually gained momentum during the third quarter despite the hurricanes. That's a solid foundation for stocks.