Feel free to post your prediction ...
S&P 500 closed the year 2019 at 3230,78 with a net gain of 28,88 %.
Since 1950, the S&P 500 have had a net gain of 25 % or more 13 times excluding 2019. The last time in recent years was 2013 with a gain of 29,60 %.
Remarkably, the average yearly gain following such a year is + 11,25 % with only 2/13 years closing negatively.
Let’s narrow it down further and look at years where…
1) The year gain was equal or greater than 25 %
2) S&P opened at the bottom of the range and closed at the top
3) S&P made and closed at all time highs
This have happened 10 times since 1950 with 2019 being the 11th time.
For the following years we had an average yearly gain of 12,79 % with 9/10 years closing positively and a remarkable 10/10 years making all time highs.
The minimum upside gain was 4,63 %. The mean upside gain was 16,49 %. The largest was 28,99 %.
2020 Prediction/Expectation:
Extrapolating from those numbers then we could see a high reading by 2020 of
a) Minimum 3380
b) A mean expectation of 3760
c) A maximum of 4165
For the Close - we should be seeing 3550 if we conservatively assume a net gain of 10 %.
One might feel that this market is due for a sell-off, but the numbers do suggest continued strength moving forward from here. Also:
Since 1952, the Dow Jones Industrial Average has climbed 10.1% on average during election years when a sitting president has run for reelection, according to the Stock Trader’s Almanac, which is widely used among investors to track historical stock market patterns.