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


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