The S&P 500 has now experienced 12 months of positive monthly momentum for just the seventh time since 1957
Inflation and Relative Strength Investing: May CPI numbers increased the most they have on a month-over-month basis since the 2008 timeframe. The Fed has also recently provided guidance moving up their timeline of interest rate hikes because of inflation picking up quicker than expected. While the impacts to consumers are pretty clear, what does an increase in inflation mean for investors? In this webinar on Tuesday, June 29th, we will explore some key areas of the market that have shown strong growth potential, and which areas of the market may be poised to participate in an inflationary environment. Click here to register.
Speakers:
- James West, CFA - Manager Asset Management Research
- Jay Gragnani - AVP Asset Management Research
As we inch towards the end of June, we find the S&P 500 (SPX) in strong field position – holding on to a double-digit return and avoiding a material drawdown in the first half of the year. In addition, and arguably as a result, SPX has now experienced 12 months, or one straight year said otherwise, of positive monthly momentum for just the seventh time ever since 1957. Although a rarity, this has not historically led to or indicated meltdowns in the months and year ahead for the index; in fact, all of the past six instances led to positive returns for the S&P 500 in the following year. The longest run of positive monthly momentum on record ended in October of 1989 after 18 consecutive months.
