Third Time’s The Charm
In 2010 and 2011, the equity markets came out of the gates relatively strong, only to pause in the second quarter. In both years, the S&P 500® Index hit a peak in the second quarter – April 26 in 2010 and May 2 in 2011 – and the pause in appreciation that followed didn’t refresh until November in the case of 2010, and never refreshed at all in 2011.
As the second quarter of 2012 gets underway, the question on everyone’s mind is – Can we get through the quarter without a pause in market appreciation? Will the third time be the charm? The equity markets got off to a strong start this year, and as of Thursday, April 5 (before the Good Friday holiday and the release of the disappointing March U.S. labor report), the S&P 500 had risen 11.4% for the year, the NASDAQ was up 18.6%, and the Russell 2000® returned 10.8%. The Dow Jones Industrial Average was up only 7.7%, with much of that lag due to the significant underperformance of energy heavyweights Chevron and Exxon. Read More.