The Chinese New Year (often called the Lunar New Year) kicks off tomorrow (February 16), and with it comes the Year of the Dog. Although we would never suggest investing based on the zodiac signs—it is important to note that the Year of the Dog has historically been quite strong for equities.
Since the Chinese New Year typically starts between late January and mid-February, we looked at the 12-month return of the S&P 500 Index starting in late January dating all the way back to 1950.* And wouldn’t you know it? The Year of the Dog is up more than 15% on average. Woof indeed.
“The Chinese Zodiac says that 2018 will be a year of happiness and rest; but, it also looks like it could be a good year for equity bulls, as the S&P 500 tends to do very well during the Year of the Dog. In fact, out of the 12 zodiac signs, no year sports a better average return,” according to Ryan Detrick, Senior Market Strategist.
We would like to stress one more time not to invest because of the zodiac sign, but wouldn’t it be something if man’s best friend could come through with more gains within the next 12 months?
*Please note: The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of predecessor index, the S&P 90.
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Past performance is no guarantee of future results.
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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.
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