Chart of the Day - Monday, November 2nd, 2020

Today’s Chart of the Day was shared on Twitter by Ryan Detrick of LPL Financial Research (@RyanDetrick). October is in the books, which means the "worst six-months" are in the rearview mirror. Interestingly, these past six months (May-October) turned out to be very strong this year. Investors who "Sold in May and Went Away" missed an impressive 17% gain in the S&P 500. Some would see this as a complete failure of seasonality. But we view the S&P 500 bucking its seasonal trend as valuable information in favor of the bulls. If stocks moved higher in the face of a seasonal headwind, what do we think they'll do when seasonality becomes a tailwind? Ryan reminds us that November is the best month of the year for the S&P 500 in both election and non-election years. As we know, 2020 has been anything but "average." But it's important to keep in mind that November-April has historically been the strongest six month stretch for the S&P 500 over the past 70 years.