Random Thoughts

Even though the S&P 500 slipped 1.5% in the first two days of what is supposed to be the best month of the year, history offers some encouraging stats.

Early slip-ups are common in December. The S&P 500 rose an average of 1.6% in this final month of the year since WWII, and was up three out of every four times.

However, December experienced a month-to-date decline in 76% of the years. What’s more, this decline averaged 1.8%. Not surprisingly, the worst selloff occurred last year, as the 500 fell nearly 15% through Christmas Eve.

Even though a December low has been recorded on the first and last day of the month, the average low occurred on the 11th calendar day of the month.

Most encouraging is that the month closed an average 3.4% higher than the low.