Welcome To April

| April 02, 2018
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Easter Monday Money Fact: Americans spend about $2.4 billion strictly on Easter candy. I ate my fair share of any sort of chocolate/peanut butter combo over the weekend!

According to the Stock Trader’s Almanac, April has historically been a strong months for stocks:

  • The Dow Jones Industrial Average (DJIA) gaining an average of 1.9%, based on data that goes back to 1950. That stands as the single best month of the year for the Dow, based on average monthly performance.
  • It is the third-best month of the year for both the S&P 500 (SPX) and the Russell 2000 (RUT). The S&P has historically gained an average of 1.5% over the month, as has the Russell.
  • For the Nasdaq Composite Index (COMP), April stands as the fourth-best month, with an average gain of 1.4%.

While investors would no doubt welcome such gains, a rise of those magnitudes wouldn’t be enough to take indexes back to record territory. The Dow is currently 9.4% below its all-time high, while the S&P is down 8.1% and the Nasdaq is off 7.5%. If stocks do bounce and don’t hit record highs, this would be what is know as lower-highs and is a bearish signal.

April gains have been particularly pronounced in recent years, according to data from LPL Financial. Over the past 10 years, April has been a positive month for the S&P 500 index 90% of the time, gaining an average of 2.2% over the month. The 90% positive rate stands as the highest of any month over the past decade, while the average gain is the third-highest of any month (behind March and July).

 

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

 

Disclosure
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Meyer Capital Group), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Meyer Capital Group. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Meyer Capital Group is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Meyer Capital Group’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

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