The S & P 500 is on pace to deliver a second straight year of gains above 20%. Historical data shows how uncommon that really is. After last week's postelection rally, the S & P 500 is now up by about 26% on the year. That comes after the broad index climbed more than 24% in 2023. If the S & P 500 once again ends the year above 20%, that would mark only the third time there have been back-to-back gains of that size in the past century, according to Deutsche Bank.
A Deutsche Bank measure of equity positioning never fell to underweight before Election Day, as has been typical in recent cycles, Thatte said. Still, there was the usual postelection rally, with equity funds seeing an estimated $24 billion in total inflows last Wednesday and Thursday. Last week's rally was driven in part by a "collapse" in equity volatility premiums that only got stronger heading into the election.