Excerpt from Reuters quoting DataTrek co-founder Jessica Rabe:
…. “The S&P 500 has notched three straight years of double-digit returns nine times since 1928, according to Jessica Rabe, co-founder of DataTrek Research.
Gains in the year following such periods have on average been weaker, with the index averaging 8.4%, compared with its overall average total return of 11.6%, DataTrek found. Stocks rose in five of those nine years and fell in the other four.
“The odds of this kind of positive momentum carrying into the next year is a coin toss,” Rabe said in emailed comments to Reuters. “But the S&P’s performance has historically proved asymmetric as positive returns have been much larger than negative returns in the fourth year”….
Read the full article here on Reuters!