Topic #5 – History suggests a strong 1H of > 10% (since 1989) bodes well for 2H
With the first half of 2023 just past us, the S&P 500 has delivered a stellar return of over 15%. This report will look at the historical returns in the last 10 instances since 1989 following a strong first half performance of over 10% gains which further lends credence that investors should remain vested for the the upcoming 2nd half of the year.
Following a strong 1st half of the year, the S&P 500 has continued to deliver positive returns in the 2nd half of the year in the past 10 instances. The average 1H return was 14.82% while the 2H typically provided slightly lower average returns of 11.16%, with 2H underperforming 1H in 8 of the last 10 times (80%). The market generated very healthy annual returns averaging 27.61% in the last 10 years where we saw 1H returning over 10%.
The data further supports the conclusion mentioned in the previous report that investors should remain vested through May as they are usually rewarded with healthy average returns in the upcoming 2nd half of the year, shaping up for a bullish annual return.
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