Chart of the Day - Monday, June 3, 2024

🏆 Today’s Chart of the Day was shared by Ryan Detrick (@RyanDetrick).

• The S&P 500 just had its best May in 15 years, gaining +4.80%. Ryan points out that the remainder of the year tends to do well when May is unusually strong.

• Looking at the 10 best monthly returns in May, the rest of the year has historically done more than twice as well on average (+10.5% vs. +4.9%).

• June has been up 80% of the time for an average gain of +1.0% after a strong May compared with 55% of the time for an average loss of -0.1% in all years.

The takeaway: The S&P 500 just had its best May in 15 years. History shows us that momentum tends to persist in the remainder of the year when May is unusually strong.