Stock Market Performance in the First Quarter

SOURCE www.marketwatch.com
The S&P 500 is on track for a 10% gain in the first quarter, leaving investors cautious about potential pullbacks. Historical data suggests that strong first quarters often lead to continued rallies in the second quarter, but may result in bumps and volatility along the way.

Key Points

  • Strong first-quarter performance often leads to continued rallies in the second quarter
  • Bumps and volatility may be expected along the way
  • Historical data shows strong full-year gains following top first-quarter advances

Pros

  • S&P 500 is on track for a 10% gain in the first quarter
  • Strong first quarters historically lead to positive second-quarter performances
  • Historical data suggests potential for strong full-year gains

Cons

  • Potential for market pullbacks and increased volatility after strong first quarters
  • Past instances have seen significant declines following initial rallies