S&P 500 Track Record Points to Another Year of Recovery
One year of recovery for the S&P 500 Index deserves another, according to Ryan Detrick and Jeff Buchbinder, strategists at LPL Financial LLC. They cited the index’s past performance after falling more than 30%, a threshold crossed in the bear market that ended last March, in a report Monday. LPL identified five other instances since World War II and found that the S&P 500 rose every time in the second year after the declines ended. Gains for that year averaged 17%, according to data compiled by Bloomberg. Any slumps in the coming year may provide an opportunity for “buying the dip,” the strategists wrote.