The month of May turned out a lot better for stocks than many would have expected. That could bode well for the rest of the summer, according to Ned Davis Research.
The SPDR S&P 500 ETF (SPY) gained 2.3% in May, while the SPDR Dow Jones Industrial Average ETF (DIA) rose 1.2%, and even the beaten-down iShares Russell 2000 ETF (IWM) finished up 0.8% last month. Last but not least, the PowerShares QQQ (QQQ), which tracks the Nasdaq 100, rose a whopping 4.5%.
Ned Davis Research’s Dan Sanborn and team not that the S&P 500 has had slightly bigger gains and slightly smaller losses along the way from June through October when May has been up by at least two percent. The S&P 500 has gained 3.9% on average during those periods, compared to a 2.7% during all periods, while the index has suffered a maximum loss of 7.3% along the way, compared to an 8.1% loss during all periods.
In other words, if you sat tight in May, you look to be in good shape. If you sold, maybe it’s time to reconsider?
No comments:
Post a Comment