Here's What Usually Happens to Stocks in Years Like 2016
Investors Lack Faith, Search for Minimum Volatility
Despite the huge comeback in the S&P 500, investors remain skeptical of the bull rally. If history is any guide, they shouldn't be so worried.
Bespoke Investment Group took a look at previous years that closely resemble the big drop, and even bigger comeback, the S&P 500 has experienced since January, and it's good news for the bulls. "In terms of rest of year returns for the years highlighted [in the table below], the S&P 500’s average performance has been +3.8 percent with positive returns 80 percent of the time," the report stated. "This is pretty much right in line with the overall average for all years since 1930." In fact, the year with the least resemblance to 2016 was the only one in which the S&P was down by double digits through the rest of the year.