February, the 2nd month of the year, usually sees stocks perform well in the first half but often declines in the latter half of the month.
Here’s the chart:
Let's break down what the chart shows:
This blue line represents the average return for February since 1950 for the S&P 500.
The Takeaway: February, on average, usually starts off positive, but the S&P 500 tends to decline shortly after Valentine's Day. On average, the month finishes relatively flat, with only 48% of days experiencing positive daily gains.
February is regarded as the second worst month of the year in terms of seasonality. Over the past decade, only 50% of February's have ended on a positive note. When we look at a longer time frame, the trend doesn't improve much; in the last two decades, just 60% of Februarys have finished with overall gains.
Grant Hawkridge | Chief Aussie Operator, All Star Charts
ICYMI: Louis, our crypto expert, went live yesterday to discuss the recent volatility in the crypto markets. He breaks down the reasons behind it and what to expect next.
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