You’d have to look back to 1938 to find an April to find better returns for the Dow and S&P 500 than this year’s April gains.
One of the well-known maxims for investors is “Sell in May and go away!” but experts say this year that may not be the best advice this year.
Coronavirus has shaken up the entire world and the markets are a prime example.
The markets usually see a seasonal pattern in which the market underperforms from May until October. However, this year is very different.
Aside from the huge losses the market suffered during the COVID-19 mass sell off, the markets have been doing well. April has been solid.
Historic Gains in April 2020
For the month, the Dow Jones Industrial Average gained about 11%, the S&P gained over 12% and Nasdaq logged gains over 15%. This marks the best month for the markets since 1987 and the best month of April since 1938.
Although unemployment rates are at the highest level since the Great Depression, the markets show that investors have seen through doomsday predictions and false projections and are ready to get back to business. Major benchmarks are already around 30% higher than the bottom of March 23.
Financial strategists view the April bounce back with optimism but with the realization that many more struggles may be on the way.