Wednesday, March 31, 2021

 

“History doesn’t repeat itself, but it often rhymes.” Mark Twain

What more can we say other than few months have been kinder to stocks lately than the month of April. In fact, it was last year that saw the S&P 500 Index gain an incredible 12.7%, for one of the greatest one-month gains in history. We noted at the time that 10% or greater months tended to usually kick off strength, not mark the end of it like many were claiming last year. Once again, history looks to have rhymed.

View enlarged chart.

Just how strong has April been lately? “I had to double check, but sure enough, stocks have closed higher in April an incredible 14 out of the past 15 years,” explained LPL Financial Chief Market Strategist Ryan Detrick. “Other than my Cincinnati Bengals breaking my heart, few things are more consistent than stocks higher in April.”

As shown in the LPL Chart of the Day, April is a great month for stocks across the board:

  • Since 1950 it is the second best month
  • The past 20 years it is the best month
  • The past 10 years it is the second best month
  • In a post-election year it ranks fourth out of 12

View enlarged chart.

Taking it a step further, here’s what the average April looks like. It sprints out to impressive gains the first 18 days or so, then it coasts in like Usain Bolt in a race.

View enlarged chart.

For more of our thoughts on markets and this upcoming April, please watch our latest LPL Market Signals podcast video below.

 

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All index and market data from FactSet and MarketWatch.

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