Your current location is:{Current column} >>Text

Strong May supports a bullish 2024 outlook for S&P 500: Stock Trader's Almanac By

{Current column}73838People have watched

IntroductionDespite recent market weakness, the posted a 4% gain in May, recouping losses from April. According ...

Despite recent market weakness,MT4 official website download the posted a 4% gain in May, recouping losses from April. According to the latest newsletter from Stock Trader's Almanac, if the market holds steady, this May will rank as the 10th best since 1950, an impressive feat for a typically weak month.

The firm said that historically, a strong Mays supports a bullish outlook for the rest of the year, bolstering confidence in a positive 2024.

Strong May supports a bullish 2024 outlook for S&P 500: Stock Trader's Almanac By

The newsletter highlights that since 1950, only two years with May gains exceeding 3% ended in the red: 1957 and 1990.

Notably, election years 1980 and 2020 saw significant gains, with the last seven months up 22% and 23.4%, respectively, leading to full-year increases of 25.8% and 16.3%.

This pattern suggests that a robust May often precedes a strong finish to the year, with a historical 70% chance of positive returns averaging 8.6%.

Stock Trader's Almanac maintains its Annual Forecast Base Case Scenario for 8-15% gains, with a best-case scenario for 15-25% potentially in play. The report also notes that markets perform better when the incumbent party retains power, contributing to this year's gains.

Despite unique political dynamics, with two candidates seeking second terms amid ongoing legal issues, the firm notes that the market has remained resilient.

Reduced uncertainty regarding potential policies and agendas from both known candidates has likely contributed to the market's performance. The newsletter suggests that after potential volatility in June and July, bullish forces typically strengthen post-conventions, pushing the market higher towards year-end.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Tags:

Related articles