(New York)
The market had gone an incredible 70 days without a closing gain or loss of more than 1%. It was one of the longest streaks in history, but it all came crashing down this week as the Dow fell 1.6% and the Nasdaq fell 1.9%. The big question is what happens next. Generally speaking, it does not matter if a long streak of placidity is broken by a positive or negative move—stocks tend to keep doing well either way. Of the 12 times such a streak has happened, in 9 of the them gains were positive over the following year, with an average increase of 9.6% on a total return basis.
FINSUM: This is good historical context, but it is important to remember that none of those occurrences have anything to do with today’s market environment. That said, we remain bullish.