The S&P 500 Is Looking A Lot Like 1904 At The Moment

Two quarters of 0 gains at S and P

Google created the biggest single day gain in stock market history, Amazon beat estimates by a full $0.33, and other company’s surprised Wall Street with their big numbers this past week. Buried in all of that excitement is something we haven’t seen since 1904. The S&P 500 posted two consecutive (back to back) quarters of 0% gains.

Fundstrat’s Tom Lee explains that this same feat “has happened only one other time in the past 125 years, for either the Dow and the S&P 500.”

The last time a 0% gain occurred back-to-back the Dow managed to hold onto that rally for six consecutive months, and then stocks surged by 43% over the next two-quarters.

Lee doesn’t outright say we are headed for another big surge, just that we should “never short a dull market.”

“There are certainly differences versus today—notably, the US was exiting a recession at that time,” Lee writes. “However, the key takeaway for us, is that history suggests we could see strong gains in 2H.”