The stock market looks poised to drop harshly through the next five months, if history is a guide, according to Stifel strategists.
The stock market historically doesn’t perform well between May and October and this year may fit perfectly into that trend. In this stretch, the S&P 500 has averaged a 1.7% drop, looking at data going back to 1950. On average, it has gained 5.48 percentage points less from May through October than between November and April, according to the strategists.
And while these are just averages dating back decades, this year may be a