Blogs & Comment

First losing decade in 90 years

Unless December stages a spectacular gain of 12.1%, the 2000s will be the first losing decade in 90 years for the S&P 500 index (on a total return basis), according to the Dec. 9 edition of Standard and Poors The Outlooknewsletter. Even during the 1930s, the S&P 500 was able to eke out a cumulative gain of 10% thanks in part to an average dividend yield of 5%.
While December is unlikely to pull off a 12.1% gain, the good news is that it usually performs well historically. The Outlooksays:
the S&P 500s average monthly performance has been strongest in December whether you look back to 1990, 1970, or 1945, outpacing the average price gains for all months by a near 3:1 margin; it ranked second behind July since 1929. Within 12 months of bear market bottoms, however, the S&P 500s return in December has been even better, rising 3.1% since 1932, while posting a 71% frequency of advance.