Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thanks, Brandy. Appreciate it.
Brandy Auterson-Hurst:
So the stock market’s had a strong year so far. What does this suggest for the remainder of the year?
David Nelson:
Well, I brought along some data on this that I think can basically set our expectations for the year. My table today, it gives us a nice feel, I think, for the S&P and how it’s peaked as far as for the year in a particular month going back to 1980. So hang with, folks. Kind of look at this a little closer here. If we look at the beginning of the year, the early months, January, February, March, et cetera, we see that if the market peaks during those periods of time, historically it’s either been flat or it’s been basically negative as far as for the year.
But if you look at the latter part of this, look at December, and that’s an exciting one to look at when we talk about returns because the average returns have been really terrific as far as during those periods of time. So again, the chart’s looking at month by month. It’s trying to give you an idea as far as if the market peaks at this particular period, what can we expect as far as going forward? And so 70% of the time it’s peaked in the final quarter. And again, translation, the returns have been good north, to 20% during those particular years that that took place.
Brandy Auterson-Hurst:
Okay. So what should investors keep in mind as we approach the end of the year?
David Nelson:
Don’t get overly excited. Historically, again, we’re at a 20% return, give or take as far as for the year. History says that’s probably about it. But incrementally, if we look at it here, there could be some possibility of some additional returns as far as coming at the end of the year. But don’t be greedy, be patient, pay attention. And again, we’ll see where this thing ends up.
Brandy Auterson-Hurst:
All right David, as always, thanks for joining us.
David Nelson:
Thank you.
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.