Ryan Detrick, CMT Senior Market Strategist, LPL Financial
2016 is a year no one will soon forget. It was the worst start to a year ever for the S&P 500 after 28 trading days (down 10.5%), only to bounce back and actually finish positive by the end of the first quarter. During the second quarter, the bounce in equities continued and the S&P 500 made its first new all-time high in 14 months.After a very volatile first half of the year, in August the S&P 500 traded in its tightest monthly range in more than 20 years. But the “v word” - volatility - has started to come back, as the S&P 500 has closed at least half a percent higher or lower for eight straight days for the first time in eight months, wrapping up the third quarter of 2016.
Adding to the case that 2016 has gone against the norm, the S&P 500 gained 3.4% during the historically weak third quarter, the best third quarter return in three years. What does the fourth quarter hold? With a highly contested election coming (among other big events), it will be anything but boring.
Best Quarter of the Year