By Investing.com Staff
In a note to clients, BofA Securities technical strategists highlighted that November begins the best 3-month and 6-month periods for the S&P 500.
"November-January is the best 3-month period of the year with the SPX up 66% of the time on an average return of 3.4%," strategists highlight. This is even more true into year 3 of the Presidential Cycle, he said. The S&P 500 is up 74% of the time on an average return of 6.70% when this is the case.
Meanwhile, November through April is the strongest 6-month period of the year for the S&P 500. "The old adage says to "sell in May and go away" and then "buy in October and stay," he comments. "November-April is the best 6-month period of the year and is up 70% of the time with an average return of 5.09%. This strong period follows the weakest 6-month period of the year of May-October." This period is even stronger from the midterm year into Year 3 of the Presidential Cycle, with the S&P 500 up 87% of the time on an average return of 11.86%.
While the seasonality data is overwhelmingly bullish for stocks, strategists warn it could be at risk if the CPI rises above average levels.