It’s been a great August, up 6% for the S&P 500, the best August since 1986.
But then again, it was a great July. And a great June. May was pretty good, too, and April was downright eye-popping.
The Summer Rally (S&P 500 Monthly Returns)
- April: up 12.7%
- May: up 4.5%
- June: up 1.8%
- July: up 5.5%
- August (so far): up 6.6%
Five straight up months. What’s going on?
“August is going to come out looking like capital markets are endorsing a US cyclical recovery,” Nicholas Colas from DataTrek told clients in a recent note.
Colas freely admits that August’s outside return has a big asterisk: Apple‘s 18% run-up.
“This meaningfully skews everything from Tech sector returns to Growth/Value performance spreads…