Thanksgiving Week Stock Performance Shines, Particularly in Election Years: BofA
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Insights - Bank of America strategist Stephen Suttmeier noted in a Monday report that Thanksgiving week has historically been strong for stock market. While the S&P 500 (SPX) often dips the following week.
Since 1928, the S&P 500 has risen during Thanksgiving week 60% of the time, with an average return of 0.28% and a median return of 0.46%. In presidential election years, the chances of gains rise to 75%, with an average return of 0.88% and a median return of 1.08%.
The report also pointed out that while the S&P 500 tends to show "some post-Thanksgiving digestion" with lower returns, strong positive returns from Thanksgiving to New Year's Eve in presidential election years suggest that investors should consider buying during the post-Thanksgiving dip in anticipation of a year-end rally.
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