Money Manager Krisiloff: There's Strong Precedent for Stocks Rising Rest of Year

Wednesday, 27 Aug 2014 08:05 AM

By Dan Weil

  Comment  |
   Contact  |
  Print  
|  A   A  
  Copy Shortlink
Scott Krisiloff, chief investment officer of Avondale Asset Management, offers powerful evidence for those who think stocks will rise during the remainder of 2014.

"Since 1950, the S&P 500 has been positive through August 42 times," he writes on the firm's website. "The market has continued to rise in all but eight of those years. The average increase between September and year-end has been 3.9 percent."

The S&P 500 has risen 8.2 percent this year, excluding dividends. A 3.9 percent gain from Tuesday's close of 2,000.02 would leave the index at 2,080.

Editor's Note:
Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

So why do stocks almost always sustain gains from the first two-thirds of the year?

"I usually think of the end of August as the beginning of the home stretch for a market year, Krisiloff notes.

"The finish line is in sight, and from here on out, market professionals will be especially focused on their performance, because track records get locked in at the end of the calendar year."

And how does that work to boost stocks? "In a year that stocks have risen, underperforming managers will often feel pressured to chase a rising market," Krisiloff writes.

The stock market certainly doesn't lack for bulls at this point.

"I am still bullish on the U.S. market, but I do expect the S&P 500 to consolidate and slip back to 1,950 to 1,980 range, as it's due for a rest once it climbs to 2,000," Manish Singh, head of investments at Crossbridge Capital in London, tells Bloomberg.

"Any dip will be a shallow one. The central bank and data narrative is still supportive of risk."

Editor's Note: Seniors Scoop Up Unclaimed $20,500 Checks? (See if You qualify)

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Bob Doll: Brace for Goldilocks Economy - But Is it Just Right?

Wednesday, 26 Nov 2014 12:09 PM

Wage inflation may seem like a relic of the past. But veteran Wall Street prognosticator Bob Doll sees it ahead as one o . . .

El-Erian: 'When You Have Very Sharp Moves in Currency, Something Breaks'

Wednesday, 26 Nov 2014 11:53 AM

The dollar's upward surge may cause problems for stocks, says Mohamed El-Erian, chief economic adviser for Allianz. . . .

Consumer Confidence Declines From Seven-Year High on Jobs Outlook

Wednesday, 26 Nov 2014 10:43 AM

Consumer confidence unexpectedly declined in November from a seven-year high as Americans became less upbeat about the e . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved