It’s the 4th Quarter!

Historically, the fourth quarter is the strongest quarter of the year for the S&P 500.  Since 1945, the S&P 500 has gained an average of 3.8% in price during the fourth quarter, according to ycharts*.

The index has risen 77% of the time in the fourth quarter.  All sectors typically post price increases in Q4, with Information Technology and Consumer Discretionary historically being the strongest performers.  Information Technology has averaged a 6.6% gain in Q4 since 1990.  Consumer Discretionary has averaged a 6.2% gain in Q4 since 1990*.

The historical information above does not guarantee future performance and you should remain allocated to meet your long-range investment goals.  In 2024, the stock market has had an above average year so far with major indexes, S&P 500, Nasdaq, and the Dow Jones all well above their long-term averages.  Will this continue as we are amid the historically best calendar quarter of the year?

I have no idea, as any performance over a 3-month period can be random.  However, you might block out all the election year bluster and headlines and remain discipled to your investment goals.

Investing involves risk, including possible loss of principal. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. This index is unmanaged and cannot be invested into directly. S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general. The Dow Jones Industrial Average is an unmanaged index of 30 stocks that is generally considered representative of large-capitalization companies on the U.S. stock market and cannot be invested into directly.

* Source: https://www.spglobal.com/marketintelligence/en/news-insights/blog/q4-s-historical-performance-will-this-quarter-live-up-to-its-reputation

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