The Surprise Bull Move Continues

The incredible summer rally continues, as the S&P 500 Index is only two days away from possibly notching a fifth consecutive monthly gain. Not to be outdone, the usually tricky month of August is looking to potentially post one of its best returns going back to 2000.

But wait, there’s more: Since 1950, no month has had fewer all-time highs than the month of August, but with two days to go, it has reached new all-time highs for four consecutive days. That hasn’t happened in August since 1987.

“This summer rally has caught many investors flat footed, but they may want to consider that more strength could be coming, if history is any guide. Here’s why, as only five times since 1950 has the S&P 500 been higher each month from April until August. In those years, the final four months were higher every single time with some really strong returns,” explains LPL Senior Market Strategist Ryan Detrick.

As our LPL Chart of the Day shows, when the S&P 500 is up each month from April until August, September—which is historically weak—is much stronger, and the final four months of the year have done much better than average as well.

Rest of Year Returns When the S&P 500 is Up in April, May, June, July, and August (1950-Present)

For more on our thoughts on this bull market, be sure to listen to our new podcast series Market Signals, where Chief Investment Strategist John Lynch and Senior Market Strategist Ryan Detrick address earnings, the Fed, new highs and many other timely investment questions.

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