Looking back at data reported by S&P since 1926, in years the index closes within 5% of even, the average annual return of the following year is 26.34%:
S&P Returns Following Flat Years
1934 -1.44% 47.67%
1939 -0.41% -9.78%
1953 -0.99% 52.62%
1960 0.47% 26.89%
1970 4.01% 14.31%
1981 -4.92% 21.55%
1990 -3.11% 30.47%
1994 1.32% 37.58%
2005 4.91% 15.79%
As you can see from the table, since 1926 there have been nine occurrences of flat calendar year returns. Only once, in 1939, was a flat year followed by a negative year. In all other occurrences, the market rallied by at least 14.31% in the calendar year following a flat year, with an average return of 30.86%.
S&P Returns Following Flat Years
1934 -1.44% 47.67%
1939 -0.41% -9.78%
1953 -0.99% 52.62%
1960 0.47% 26.89%
1970 4.01% 14.31%
1981 -4.92% 21.55%
1990 -3.11% 30.47%
1994 1.32% 37.58%
2005 4.91% 15.79%
As you can see from the table, since 1926 there have been nine occurrences of flat calendar year returns. Only once, in 1939, was a flat year followed by a negative year. In all other occurrences, the market rallied by at least 14.31% in the calendar year following a flat year, with an average return of 30.86%.
