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4 Charts To Help You Get Ready For July And Beyond

4 Charts To Help You Get Ready For July And Beyond

July 02, 2021
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Incredibly, 2021 is halfway over! There’s a long way to go, but it has been a great year for stock bulls, a historically bad year for bonds, and a great year for the economy. We recently found these four charts that we think all investors need to see as we head into July.

As we turn the page on June, it is important to remember that the third quarter historically is the worst quarter of the year. The good news though is the weak performance opens the door to the historically very strong fourth quarter.

See enlarged chart.

Now here’s the catch about the third quarter, July is usually strong. It is August and September you need to worry about. “July is historically a really good month for stocks during the usually dull summer months,” explained LPL Financial Chief Market Strategist Ryan Detrick. “In fact, during a post-election year, it is the best month of the year, up 2.2% on average since 1950.”

See enlarged chart.

Apparently, stocks like July 4th, as the few days leading up to the holiday are some of the best of the year for the S&P 500 Index.

See enlarged chart.

Lastly, a good start to a year is usually a good sign for the rest of the year. As shown in the LPL Chart of the day, when the first six months for the year gain more than 12.5% (like 2021 will likely do), then the final six months do extremely well, with a median return of 9.7%, nearly twice the median return of 5.0% for any given year.

See enlarged chart.

Hope you enjoyed these four charts and here’s to a happy and safe July 4th holiday!

 

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This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. All index and market data from FactSet and MarketWatch. This Research material was prepared by LPL Financial, LLC. Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

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