The S&P 500 is up 9.9% from its September low of 1,887. The index is right around 2,075, which is just a hair above the 2,059 level where it began the year.
In other words, the S&P 500 has returned just a hair more than 0% in 2015.
“[This] is important because the S&P 500 came into 2015 riding a six-year winning streak, and it has NEVER been up for seven consecutive years,” NYSE floor director Rich Barry writes. “So, as you can see, we have got something to shoot for here… Speaking of October, with the S&P up 7.8% for the month, currently this stands as the sixth best October EVER for the index – with one week to go.”
Things that were supposed to happen didn’t happen as things that no one saw coming did. In case you missed it, here are some highlights:
China unexpectedly devalued its currency the renminbi (RMB). Stocks crashed, with the Dow plunging by more than 1,000 points in a single day. The Federal Reserve announced it would delay rate hikes. Volkswagen was revealed to be using software to cheat emissions-standards tests. Glencore shares crashed as the viability of the mining giant’s operations was called into question. September’s US payrolls report flopped. Citron Research accuses the $37 billion pharmaceutical giant Valeant of fraud. All the other news, including the risk of a US government shutdown and Russia’s intervention in Syria.
“Resilience in equities is a positive,” Fundstrat’s Tom Lee writes.
“[W]e can understand why investors are skeptical today, given the magnitude of challenges and issues facing investors in the past year,” Lee added. “[T]he negative news flow was concentrated during the 50-days between mid-August and early October. And notice how equities have since shown remarkable resilience.”
Lee’s got a 2,325 price target for the S&P 500.