Broker Check

5 Month Win Streak

July 14, 2021
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The S&P 500 is on a 5 month win streak.

Some of you might read that sentence and think what goes up, must come down. And you might be right: The stock market hasn't seen a 5% correction since October, and those occur a couple times per year on average. There have only been five occasions in the past twenty years when markets have gone longer without that kind of dip.

But consider past history and you might find yourself thinking that objects in motion tend to stay in motion. Just look at previous 5 month win streaks in the stock market. One year after the 5 month stretch of positive performance, the S&P 500 has been higher 25 out of the last 26 times:

 

  

It's impossible to know for certain where the market heads from here. As 2020 showed us, significant risk can appear out of nowhere and derail a bull market.

But if past win streaks are any indication, momentum should continue to be a major tailwind for the market.

 

 

 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. Past performance is no guarantee of future results.