For the stock market, April is the strongest month

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April has been the strongest month for stocks over the past 20 years.

April has been the kindest month for stocks over the past 20 years, and this seasonality, combined with a stellar first quarter for equities, has stock-market bulls looking for equities to build on their first-quarter rally in the months ahead.

“It is hard to say what has caused positive seasonality at this point in the year,” Detrick wrote. “Investors could be heaving a sigh of relief after a typically volatile first quarter, managers could be squaring up portfolios at the start of a new quarter, or the advent of spring and warmer weather could just lighten up everybody’s moods.”

Jeffrey Hirsch, editor of the Stock Trader’s Almanac noted in a recent blog post that since 1949, the S&P 500 has never finished in negative territory following a first-quarter gain of more than 5.4%.

 

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