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By Request: The 50 Best Months in S&P History and What Followed
By JLP | November 4, 2008
JD over at Get Rich Slowly asked me to do a follow-up to my 50 Worst Months post from last week—this time looking at the 50 BEST months in the S&P history and what happened the following month, six months, one year, and five years. JD, this one’s for you!
The cool thing about Excel is that once the formulas are properly in place, it’s very easy to change things up to get a different perspective on the same data. I did just that and here are the results:
First off, can you imagine the market going up over 40% in ONE MONTH???? Wow!
What I found most interesting was that only seven times was the market negative in the following 5-year period, which was identical to the results found for the 50 Worst Months. In fact, all the results were basically the same for the 50 Best and 50 Worst months:
Interesting…I guess it shows just how unimportant the short-term is on the long-term returns.
Topics: Investing | No Comments »