2018 Outlook – VETS Indexes
The market, as measured by the S&P 500, is off to a very strong start, up 6% YTD and looking to build on the impressive gains of 2017.
The fact that the S&P 500 is above five percent is a meaningful indicator for continued opportunities. Since 1950, when $SPX is up greater than five percent or more for January, the full year has finished in the green twelve out of twelve times with an average gain of 24.8%. The final eleven months closed higher eleven out of twelve years with only 1987 being the outlier.
Another indicator of growth is the momentum factor within the market. The $SPX hasn’t closed below its 40 week moving average in almost two years as highlighted below; certainly, a sign of strength.