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The stock is buy rated by about 70% of analysts covering it, who give it average upside of 164.3%. Meanwhile, shares in Warren Buffett-backed BYD were up just 9% in November, but analysts think the stock could rally 68.4% looking ahead. Tech stocks A slew of Chinese tech stocks made the screen too, including Alibaba and Tencent . Analysts are bullish on Alibaba, with 89% of analysts holding a buy rating on the stock and giving it average upside of 39%. Andrew Maynard, head of equities at investment bank China Renaissance, believes Chinese Big Tech stocks such as Alibaba and Tencent are "incredibly cheap."
December is typically a strong month for stocks, and there are several good opportunities in the index for investors looking to get ahead. That makes it the third-best month on average for the broader market index over that time period. Here are the 15 stocks: Casino stock Caesars Entertainment stands out as the stock with the highest median gain at 8.7%. Payments technology provider Global Payments, a financial stock, is also on the list with a 1% median gain from the last 10 Decembers. The stock has buy ratings from 80% of analysts covering them.
September, meanwhile, is the worst month of average for stocks, with a 0.7% average decline. Gains would be welcomed by many investors after seeing the S&P 500 Index (.SPX) fall around 16% so far this year. Still, weighing on the market has been the U.S. Federal Reserve's actions to aggressively tighten interest rates to fight inflation. The average Santa rally has boosted the S&P 500 by 1.3% since 1969, according to the Stock Trader's Almanac. The painful double-digit declines in both U.S. stocks and bonds, meanwhile, have made both asset classes more attractive for long-term investors, said Liz Ann Sonders, chief investment strategist at Charles Schwab.
A split government "makes major policy changes unlikely, and that stability in policy tends to be reassuring for investors." Still, macroeconomic concerns and monetary policy have driven markets all year, and investors believe that trend is unlikely to change anytime soon. "Inflation matters more than anything else right now," said Michael Antonelli, managing director and market strategist at Baird. In the last five instances when the November-December period occurred in a bear market, the S&P 500 logged an average two-month decline of 2.2%. If you look at bear markets there is no evidence of seasonality at the end of the year," Antonelli said.
This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics. But the point is, stocks have not been oblivious to slowdown risk to this point. Part of this is because energy firms are nicely profitable even at $75-$85 crude and are the rare group showing earnings growth. So far, the financial markets have not shown particular stress over the crypto unwind. Almost no movement in VIX, with modest index moves, expiration often pinning indexes in a narrow band and holiday-slowed trading ahead next week.
The sustainability of a year-end rally in the stock market hinges on Apple, according to Fairlead Strategies' Katie Stockton. "A breakout would likely foster a greater relief rally given Apple's influence on the major indices and sentiment," Stockton said. With the stock market on the verge of entering its best performing period on a seasonal basis, a continued relief rally is on the table. "Apple may hold clues as to the strength of the relief rally," Stockton said. "A breakout would likely foster a greater relief rally given Apple's influence on the major indices and sentiment," Stockton said.
The Dow has climbed in the run-up to Tuesday's midterm elections, fitting into a historical pattern of bullish trading every four years. According to the Stock Trader's Almanac, the Dow has consistently risen before and after midterm elections for nearly 90 years. "An impressive 2.8% has been the average gain during the eight trading days surrounding midterm election days since 1934. This is equivalent to roughly 966 Dow points per day at present levels," the Almanac says. It is unclear why the historical trends are strong for midterm elections in particular.
The average annual return of the S & P 500 in the 12 months before a midterm election since 1962 is 0.3%, "significantly lower than the historical average of 8.1%," US Bancorp said in a recent note. In the 12-month period after a midterm election, the S & P is up an average of 16.3%. The outperformance was especially notable in the period three months and six months after the election, when the S & P was up 7.3% and 15.1% on average. Most attribute the reason for underperformance to policy uncertainty — investors do not know which political party will hold a majority in Congress, which resolves after the midterm election. The S & P was higher 88.9% of the time.
How you play it could make a difference to your returns, according to CFRA. The rule of thumb, popularized in the Stock Trader's Almanac, is that November through April are the strongest six months in any given year for the S & P 500 . The average price gains from equal exposure to these sectors was 9%, compared with 6.7% for all of the S & P 500, Stovall pointed out. Since 1992, the S & P 500 gained an average 15.2% in November through April of those years. Investors can also get exposure through individual sector ETFs, such as the Consumer Discretionary Select Sector SPDR Fund , the Industrial Select Sector SPDR Fund , the Materials Select Sector SPDR Fund and the Technology Select Sector SPDR Fund .
Stocks' surprising strength in the face of Big Tech's disappointing earnings could signal the start of a new bull market, according to the Stock Trader's Almanac. Since 1950, the S & P 500 and Dow Jones Industrial Average have averaged a gain of at least 0.9% in each of the next three months, according to the almanac. The Dow, S & P 500 and Nasdaq Composite have all fallen into bear markets this year, defined as being 20% or more below their recent highs. S & P 500 and NASDAQ have not. Further gains will be needed to truly confirm a new bull market," the note said.
NEW YORK, Oct 27 (Reuters) - A potential recession could end a streak of gains for U.S. stocks that has followed every midterm election since World War Two. Since 1946, the S&P 500 (.SPX) has climbed 19 out of 19 times in the 12-month period after midterm elections, according to data from Deutsche Bank. The vote helps clarify the policy outlook regardless of the result because the make-up of Congress is known. November and December rank as the second- and third-best performing months of the year since 1950, with average S&P 500 gains of 1.7% and 1.5%, according to the Stock Trader's Almanac. Meanwhile, the current inflationary environment makes post-midterm fiscal stimulus less likely, another factor that could limit stock gains.
We can at least run through what we know about this market and how market cycles tend to unfold more generally. Fewer individual S & P 500 stocks made a new 52-week low than in mid-June even as the index itself undercut the June low, a modest positive glimmer. The prior extreme lows on this chart were near noteworthy market lows, if not always right at them. The Stock Trader's Almanac notes that of the 23 S & P 500 bear markets since World War II, seven ended in October. The S & P 500 has failed in four tries of since late August even to get above the short-term 20-day moving average, most recently on Friday.
But Emanuel sees the chance for a 17% to 20% rally in the S & P 500. The S & P 500 was down about 0.9% for the week, as of Friday afternoon, and it was hovering just above 3,600. S & P 500 earnings are expected to grow by 3.6% for the third quarter, based on actual reports and estimates, according to Refinitiv. Without the boost from more than doubling profits from energy companies, S & P earnings would decline by 3.1%. Week ahead calendar Monday Earnings: Bank of America , Bank of NY Mellon, Charles Schwab 8:30 a.m.
However, this month has also seen the end of more bear markets than any other. Data from the Stock Trader's Almanac shows that, of the 23 S & P 500 bear markets since World War II, seven ended in October, more than any other month. The majority of Dow Jones Industrial Average and Nasdaq Composite bear markets have also ended in October. What's more, there are some signs that the end of this bear market could be near. Indeed, many of the headwinds hurting the stock market aren't going away anytime soon.
If you've looked at your portfolio lately, 2022 may not seem like a "sweet spot" for much of anything. But a "sweet spot" is exactly what Jeffrey Hirsch, a market historian and publisher of the Stock Trader's Alamanac, says investors can take advantage of now. Hirsch sees the market's decline in the first three quarters of 2022 not as a negative but as a potential entry point for investors. That's because since 1946, the S&P 500 has gained an average of 28.2% over the next five quarters after sinking for the first three of a calendar year, with no losses, according to the Stock Trader's Almanac. "We think the market is setting up for the best buying opportunity of the 4-Year Cycle," Hirsch recently wrote on his website.
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