Chart of the Day - Monday, October 28, 2024

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

• Ryan points out that the 'best six months' begin on Friday as we turn our calendars. November through April has historically been the best six-month stretch of the year, rising 77% of the time for an average gain of +7.1%. 
   
• May through October has historically been the 'worst six months,' rising only 65% of the time, for an average loss of -1.7%. However, this year, investors who "sold in May and went away" missed out on +15.6%, making it one of the strongest 'worst six months.' since 1950. 
   
• Ryan also noted that when the S&P 500 rises double digits during its 'worst six months,' the following year has been higher 91% of the time, for an average gain of +13.2%.  
   

Takeaway: The 'best six months' are around the corner, and the 'worst six months' were much stronger than usual. To quote the legendary Walter Deemer, "When the market doesn’t do something it should do, it usually means that the underlying trend is unusually powerful.”