In yesterday’s blog post I mentioned the market’s tendency to slowly grind higher heading into the New Year. Well, I posted that information in the morning and sure enough the S&P 500 had a reversal down of over one percent. In doing some research, I found that the trading days of the last week between Christmas and the New Year tend to experience very little volatility over time. This makes sense given that we are in the month of December with fewer days to trade and more holidays. Taking this all into account you can see that yesterday’s move was very unusual. So far today, the S&P 500 is up, but as everyone knows this can change quickly. Remember, tomorrow is the last trading day of the year and to get in any tax loss selling that you may need to do.
As a reminder the S&P 500 is an unmanaged index. Investors cannot invest directly in an index.
Past performance is no guarantee of future results.
Eric Marvin, CFP®, CRPC®
JPT122911-2112
