Equity Markets – The Incredible Streaks Continue

Equity Markets – The Incredible Streaks Continue
  1. “We’re going streaking.”  – Frank “The Tank” Ricard from Old School

Equity markets continue to move higher, and as a result, several long streaks are taking place. Per Ryan Detrick, Senior Market Strategist, “This is the Frank ‘The Tank’ market, as multiple streaks have taken place recently that are in the history books, with some being the most impressive ever.”


Here are some of the notable recent streaks:

Hayden Capital 2Q22 Performance Update

unnamed 12Hayden Capital's performance update for the second quarter ended June 30, 2022. Q2 2021 hedge fund letters, conferences and more Dear Partners and Friends, The markets continued to sell-off in the second quarter, especially for internet-based businesses.  This year continues to be the toughest stretch for us, since the Hayden’s inception.  Inflation concerns and the Read More

  • Yesterday ended a streak of 17 consecutive closes for the S&P 500 Index within 0.5% of its previous closing price – the longest streak of small daily changes since 1969.
  • The S&P 500 Index has closed higher 8 days in a row for the first time since 2013 and has closed at all-time highs 6 days in a row for the first time since June 1997.
  • The S&P 500 has been up 8 consecutive quarters for the fifth time ever.
  • The Russell 2000 Index recently closed at a new all-time high eight days in a row.
  • The Euro STOXX 600 recently closed higher nine days in a row—the longest streak in more than two years.
  • The CBOE Volatility Index (VIX) yesterday closed at 9.19, its lowest close in history. It also closed beneath 10 for 7 consecutive days for the second time ever. Last, it averaged only 10.94 in the third quarter which is its lowest quarterly average ever.
  • The Russell Microcap Index recently closed at a new all-time high 12 out of 14 days.
  • The S&P 500 has closed higher a record 11 consecutive months on a total return basis (i.e., including dividends). Since 1950*, that has only happened two other times, with both instances taking place during the bull market of the 1950s. Be aware though, neither of those made it to 12 months.

Now That’s a Win Streak

Frank “The Tank’s” run through the quad and into the gymnasium eventually ended—and these long market streaks will eventually end as well. It is important to remember that daily streaks of new highs can’t go on forever, and that increases in volatility aren’t necessarily something to be overly concerned about; pullbacks are a regular part of investing. In fact, the latter stages of the economic cycle have historically seen relatively more volatility, and we expect it to pick up in the fourth quarter and as we head into 2018.

Article by LPL Financial

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