Chart of the Day - Thursday, November 30, 2023

Today’s Chart of the Day was shared by Charlie Bilello (@charliebilello). We hope you bought in October and got yourself sober because it was a November to remember. The S&P 500 violently snapped a three-month losing streak in November, rising +8.9%. This marks the best month since July 2022 and the 18th-best month on record. If you think the S&P 500 has come "too far, too fast," think again because momentum is a funny thing. According to the data table, the strongest months have historically been followed by above-average returns across all time frames. The next month isn't very impressive, but the alpha becomes more pronounced as you look further. Too far, too fast certainly has a nice ring to it, but history tells us that unusually strong months often produce unusually strong returns.