The S&P 500 hit an all-time high above 3,000 on Monday, and if market history is any guide, November could soon produce another record.
The fourth quarter of the year tends to be the strongest period for stocks. The month of November, in particular, has been among the best months of the year for the markets over the past decade.
All three major indices have…
traded positively 80% of the time in November since 2009, according to a CNBC analysis of Kensho, a hedge fund market analytics tool. The S&P gains an average of 1.8%, while the Nasdaq adds over 1.6% and the Dow Jones Industrial Average has been up, on average, 2%.
The Dow has posted the highest average return in November over the past decade, but the S&P reached a new record, primarily due to one stock’s rough patch: Boeing has been a big drag on the Dow of late.
The S&P 500′s Monday close topped a record set on July 26. Stocks had suffered since the summer, but the S&P is now up 6% from its August lows. Several factors contributed to the stock market rally.
“The market is finally breaking out of this trading range, and it is headed higher,” Andrew Slimmon, managing director at Morgan Stanley Investment Management, told CNBC on Monday. Speaking about the strength in cyclical stocks in particular, Slimmon said, “If the economy was going to hit a really bad patch, these stocks wouldn’t be recovering. The economic data has been better than expected. Earnings have come in better than expected.”
The top-performing sectors in the second to last month of the year, according to the CNBC analysis of Kensho data, are…
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