Posted: 26 Oct 2020 01:15 PM PDT
November maintains its status among the top performing
months as fourth-quarter cash inflows from institutions drive November to lead
the best consecutive three-month span
November-January. However, the month has taken hits during bear markets and
November 2000, down –22.9% (undecided election and a nascent bear), was
NASDAQ’s second worst month on record—only October 1987 was worse.
November begins the “Best Six Months” for the DJIA and
S&P 500, and the “Best Eight Months” for NASDAQ. Small caps come into favor
during November, but don’t really take off until the last two weeks of the year.
November is the number-two DJIA (since 1950), NASDAQ (since 1971) and Russell
2000 (since 1979) month. November is best for S&P 500 (since 1950) and
Russell 1000 (since 1979).
November is a mixed bag in presidential election years. DJIA
has advanced in 10 of the last 17 election years since 1952 with an average
gain of 1.7%. Significant DJIA declines occurred in 2008 (-5.3%) and 2000
(-5.1%). For S&P 500 November ranks best with a similar record to DJIA.
NASDAQ, Russell 1000 and Russell 2000 are not as strong ranking #7, #3 and #6
respectively. Fewer years of data (12 for NASDAQ and 10 for Russell indices)
combined with sizable losses in 2000 and 2008 drag down rankings and average
gains when compared to DJIA and S&P 500.
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our latest market analysis and trading recommendations. Get a full run down of
seasonal tendencies that occur throughout each month of the year in an
easy-to-read calendar graphic with important economic release dates
highlighted, Daily Market Probability Index bullish and bearish days, market
trends around options expiration and holidays. In addition, the Monthly
Vital Statistics Table combines stats for the Dow, S&P 500, NASDAQ,
Russell 1000 and Russell 2000 and puts them all in a single location available
at the click of a mouse.