2020 has gotten off to a solid start

Quant studies are starting to point to 2020 being a good year. Since 1950, when the first 5 days of the year are positive, the market has posted a gain 36/45 times (80%), with an average/median gain of 13.6%/13.6%. This is only slightly better than “all years,” so don’t get too excited. But when the S&P gains more than 0.65% in the first five days, as it did this year, the index posts a full year gain 31/35 times (89%), with an average/median gain of 17.2%/20.9%. Much more encouraging. These types of stats don’t guarantee anything, but they do provide a solid backdrop. Add that this is an election year – a traditionally positive year.