Tuesday, October 19, 2010

As September goes, so goes the rest of the year

If history remains a foretelling of future events, a strong investment September is usually a prelude to a strong year end finish. This September the S&P 500 posted an 8.92% return, the biggest September gain since 1939.

Keep in mind past performance is no guarantee of future results. But...

Since 1930, after a positive September, the stock market averaged 10.5% in the months September to January.

Since 1929, the fourth quarter of the mid-term election year has historically generated the market's best quarterly return, averaging nearly 8%.

Since 1942, the market has gained on average 18.3%, six months after mid-term elections.

Since 1900, the third year of the presidential election cycle generates positive returns 81% of the time in the Dow Jones Industrial Average, with an average gain of 12.6%.

Source: Richard Golod, Director Global Investment Strategies for Invesco
Washington DC, 14 October 2010

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