S&P 500 Soars Nearly 9% in November, Historically Signaling Strong 12-Month Gains Ahead
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The S&P 500 jumped 8.9% in November, one of its best monthly gains since 1950. This has happened only 30 times since 1950.
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Historically, the S&P 500 gains an average of 15.8% in the 12 months following a monthly surge of over 8%.
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The recent stock rally suggests the Federal Reserve may be done raising interest rates, which is positive for stocks.
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When the Fed stops rate hikes, the S&P 500 tends to increase sharply, with an average 12-month gain of 17.6% post rate-hike cycles since 1982.
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While history suggests more upside for stocks, future returns ultimately depend on the economy and investor sentiment going forward.