The Kindest Quarter Arrives for a Stock Market That Nothing Can Rattle
- S&P 500 has risen seven times since 2009 in final three months
- Matching average return would lift index to 2,676 by December
Leuthold CIO Says Small Caps Have Grown Into Valuations
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Theories abound as to why the fourth quarter is so often the best one for equity bulls. Fund managers need to catch up, holiday spending spreads cheer, investors celebrate the January effect in December.
Or maybe it’s just dumb luck. Whatever the case, the S&P 500 Index has risen seven times in the last eight years between October and December. And while calendar effects just took a beating with a volatility-free September, betting against any form of momentum remains a losing trade until proven otherwise.