Wednesday, March 31, 2021
“History doesn’t repeat itself, but it often rhymes.” Mark Twain
What more can we say other than few months have been kinder to stocks lately than the month of April. In fact, it was last year that saw the S&P 500 Index gain an incredible 12.7%, for one of the greatest one-month gains in history. We noted at the time that 10% or greater months tended to usually kick off strength, not mark the end of it like many were claiming last year. Once again, history looks to have rhymed.
Just how strong has April been lately? “I had to double check, but sure enough, stocks have closed higher in April an incredible 14 out of the past 15 years,” explained LPL Financial Chief Market Strategist Ryan Detrick. “Other than my Cincinnati Bengals breaking my heart, few things are more consistent than stocks higher in April.”
As shown in the LPL Chart of the Day, April is a great month for stocks across the board:
- Since 1950 it is the second best month
- The past 20 years it is the best month
- The past 10 years it is the second best month
- In a post-election year it ranks fourth out of 12
Taking it a step further, here’s what the average April looks like. It sprints out to impressive gains the first 18 days or so, then it coasts in like Usain Bolt in a race.
For more of our thoughts on markets and this upcoming April, please watch our latest LPL Market Signals podcast video below.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index and market data from FactSet and MarketWatch.
This Research material was prepared by LPL Financial, LLC.
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking 1- 05128171