Here Comes the Best Month of the Year

Posted by lplresearch

Wednesday, March 30, 2022

After one of the worst starts to a year ever for stocks, March has seen a huge bounce. Incredibly, the S&P 500 Index is only about 4% away from new all-time highs. The big question is can the near-term strength continue?

“The good news is stocks really appear to love April. Not only is it the best month on average since 1950, but it has also been higher an incredible 15 of the past 16 years as well,” explained LPL Financial Chief Market Strategist Ryan Detrick.

As shown in the LPL Chart of the Day, the S&P 500 has indeed closed green in April in 15 of the past 16 years.

View enlarged chart.

Taking a deeper look at April reveals that it’s not just the best month for stocks since 1950—it’s also the best month in the past 20 years and the second best month in the past decade. If there is one flaw, it is that in a midterm year it ranks only seventh and is barely positive.

View enlarged chart.

For more on April seasonality and our latest views on stocks and the economy, please watch the latest LPL Market Signals podcast with Jeff Buchbinder and Ryan Detrick, as they break it all down.


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.

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All index and market data from FactSet and MarketWatch.

This Research material was prepared by LPL Financial, LLC.

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