Sep. 24 at 3:22 PM
$SOXS $UVIX $FNGD $SPXU $SQQQ
Looking for big market crash in 4Q? Think again.
According to the bank, “Q4 tends to be the most wonderful time of the year” for equities, with ten of ten major indices showing strong positive average returns.
BofA highlighted that the S&P 500 has averaged a 2.84 percent gain in the quarter, rising 74 percent of the time, while the Nasdaq 100 posted a 6.16 percent average increase, up 69 percent of the time.
They added that the Russell 2000 has also tended to deliver gains of 4.58 percent, rising 76 percent of the time. “October sideways, Nov better, Dec especially favorable,” BofA said.
Sector trends also support a bullish tilt, according to the bank. “Technology Q4’s best performer, up 80% of the time by 6.64%,” the bank noted.
Consumer discretionary, financials, industrials, and materials typically outperform, while “energy and real estate relatively lag, returning < 2.50% just 63-65% of time.”
https://www.investing.com/news/stock-market-news/bofa-on-why-q4-tends-to-be-the-most-wonderful-time-of-the-year-for-stocks-4253217
