History says to buy the dip in the first quarter. Given the new year is here, it’s important to have some framework for expectations, states Lucas Downey of Mapsignals.com.
Luke reviews how the S&P 500 tends to perform on a first-quarter and annual basis going back to 1980. Investors have been told to expect 10% gains for stocks over the long run. Turns out, that’s exactly what’s transpired over the last 44 years. Since 1980, the S&P 500 has jumped an average of 10.3% annually. When you break those returns down, Q1 averages a 2.07% pop, while Q2 – Q4 results in nearly 8% gains.
However, in Q1 of election years, stocks tend to drop before recovering before and after the election vote. This is why we believe investors should buy any dip in Q1. Staying ahead of the crowd is the edge you need to succeed in trading. We use data to help us make sense of the market. While there are no guarantees with investing, history does give clues. Learn more at www.MAPsignals.com Remember this is not personal investment advice of any kind. This video is for informational and entertainment purposes only. Our focus is to help investors make sense of markets with data.
To learn more about Lucas Downey, visit Mapsignals.com.
