Do you eye the daily stock market fluctuations with dread? Just when you think you’re investments are home-free, they tumble again (seemingly because somebody sneezed in China). And poof, there goes that early retirement plan.
Well here’s something that should lessen the stress for investors this year, at least for those with a superstitious streak.
USA Today’s Adam Shell recently wrote about a curious 70-plus-year trend that has occurred over and over again with the S&P 500 in years ending with “5.”
Since the exchange began in late 1920s, every year ending in “5” has ended up with positive gains. Quoting number-crunching research data from the Bespoke Investment Group, Shell noted that since 1935, the S&P 500 stock index ended those once-a-decade “5” years higher every single time.
Average gains were “an eye-popping 25.3 percent,” Shell wrote.
Even the two times the market got off to a losing start through late March — in 1935 and 2005 — those years still ended the year with gains, he noted.
And when the S&P sees gains, Dow Jones and and other stock indexes tend to as well.
The research failed to come up with a logical reason. But, calling the phenomenon a market X-Factor, Shell says who wants to be a buzzkill?