Why You Should Bet On Leveraged ETFs In November
Zacks Investment Research | Nov 05, 2019 10:10PM ET
November has been among the best months for markets over the past decade with seasonality playing a vital role. In fact, it marks the start of the best six months for the Dow Jones and the S&P 500, and the best eight-month period for the Nasdaq, according to Almanac, citing “fourth-quarter cash inflows from institutions.”
November has been the third-best month for the Dow since 1950 and the Nasdaq since 1971. The month has also been the second best for the S&P 500 for nearly 70 years and the small-capitalization Russell 2000 Index since 1979. According to a CNBC analysis by Kensho, all the three major indices have traded positively 80% of the time in November since 2009. On average, the S&P 500 gained 1.8%, while the Nasdaq was up more than 1.6% and the Dow Jones Industrial Average rose 2%. Per CFRA, November has been the third-best month for the S&P 500, with 1.3% gain, on average, two-third of the time since World War II.
The bullish trend seems more likely this year with positive momentum built up in the space. Better-than-expected earnings, easing policies, renewed trade deal optimism and a solid job report have boosted investors’ sentiment. Further, the holiday season fervor will add to the strength (read: Zacks Investment Research
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