Stocks have had a bang-up year so far, and they’re heading straight into the month that is often the best of all.
The S&P 500 is up more than 25% for the year, joining other major indexes in an uptrend.
2019 has turned out to be a very good year for the market, with the Jan. 1 to Thanksgiving Day period the 14th best for the S&P 500 since 1928, according to Bespoke. The 25.5% gain in the S&P 500 was the best for the period since 2013, and now the market enters a typically strong period.
Best month of year
“December is the best month of the year. The S&P is up 1.6% on average. It also has the highest frequency of advances, up 76% of the time,” said Sam Stovall, chief investment strategist at CFRA. December is also the least volatile month of all, but it could see some bumps.
“The market tends to go through a mid-December low, which then represents a good buying opportunity, at least through the end of January,” Stovall said, adding he thinks the decline would be no more than 5%. “I don’t think we need a big pullback or a correction. A mid-single digit decline would be sufficient.”