What Happens Thanksgiving Week?

This is Thanksgiving week, and we all have many things to be thankful for. With equities near all-time highs, the end of the earnings recession, and positive seasonality for the next few months, investors have much to be thankful for considering this year started off as the worst ever after 28 days for the S&P 500.

One popular question is, what happens during the week of Thanksgiving? Historically, this is a strong week, and going back 20 years shows the average Thanksgiving week was up a solid 0.8%. Of course, that was skewed by a huge 12% jump in 2008, and the median return dropped to slightly positive as a result.

Here is a daily breakdown of each Thanksgiving week going back 20 years. Note that the only week to see all four days higher was indeed during the bear market of 2008, while 2011 was the only year to drop all four days. Also, Monday had the highest average return, but Wednesday tended to be green the highest percentage of the time. Finally, last year was one of the calmest Thanksgiving weeks ever, as not a single day closed higher or lower by 0.2%.

 

112116_blog_figure1

IMPORTANT DISCLOSURES

Past performance is no guarantee of future results. All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

The economic forecasts set forth in the presentation may not develop as predicted.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

Stock investing involves risk including loss of principal.

Because of their narrow focus, specialty sector investing, such as healthcare, financials, or energy, will be subject to greater volatility than investing more broadly across many sectors and companies.

The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor

Member FINRA/SIPC

Tracking # 1-557320 (Exp. 11/17)