Seasonal Strategies

Nasty Thanksgiving Week Does Not Signal Market Demise

Hold on a second. Yes, this was the worst Thanksgiving week for the S&P 500 since 2011 and the 5th worst since 1930. But this does not mean the bull market is over for stocks and there is no upside. Just look at the table below of the S&P 500’s performance following all down Thanksgiving weeks since 1930.

Sure the market was horrible back in the 1930s at the depth of the Depression, but 1933 was up 46.6% following down T-Week in 1932. 2011 was a great entry point and the following year 2012 was solid up 13.4%. More down T-week years ended in the black and 71.4% had solid gains to finish the year. So don’t let the market’s turkey hangover get you down.

S&P 500 Performance after Down Thanksgiving