Are We About To See A Rising Stock Market In November
November has a certain reputation to it when it comes to the stock market. It turns out, November tends to be a good month for rising stock prices. It turns out that these types of things tend to be cyclical to an extent. This means that there are certain patterns which have been noticed by professionals and novice traders alike. One of those trends is that stocks have historically had their worst performance between the months of May and October. However, they have had surprisingly strong results between November and April according to Forbes.com.
What The Returns In November Look Like
If stocks are such a great option in November, then what do the average returns for stocks look like during that month? The answer to that question can be shown mathematically from an article by Business Insider:
- Average monthly returns for stocks in November since 1929 is 0.6%
- The largest percentage drop in November since 1929 is roughly 4.5%
- The largest gain in November since 1929 is roughly 5.8%
As you can see from this list, it is not impossible for stocks to decline in value in November. At the same time, it is abundantly evident that they tend to rise far more than they tend to decline. The declines also tend to be more muted than the rise. As such, this may help prove the idea that November is a particularly great month in which to purchase stocks.
Any Given Year
There is never certainty in the stock market. If there were certainty, then there actually would not be any market at all. It is more of less a collection of people staking their money to say that they believe any particular company or group of companies will succeed or fail. Given that, there is always going to be volatility as part of the market.
Just because markets have historically risen in the past does not mean that is what is about to happen again. It is always a good idea to get in contact with a qualified financial adviser to go over all options that are available to you when it comes to your investment portfolio. At the same time, it might well be worth giving some consideration to historic trends from the past.
If you have immediate financial needs and have money in the stock market, you might want to consider companies like Easy Choice Lenders to solve those immediate needs. It might be a better option than pulling your money from the stock market during this particularly bright spot for stock market gains. You could be missing out on some returns for your portfolio that you do not want to miss.
The Good Year Could Keep On Rolling
The stock market has already been on a tear. There are so many who can hardly believe that it could go any higher. Still though, it has continued to rage forward. Will the month of November help to bring even more good news to those who have already benefited from this market? It does seem like there is a pretty decent chance that this may happen. If you are the type to put money into investments, you are obviously looking for a return on that money. Do not squander that opportunity by missing out on some of the best performing months in the market.