Low Volatility Might Help Stocks in Q4
Low volatility bug you? It might be a help for stocks in Q4.
From Josh Dollinger at BTIG comes the following interesting nuggets:
1) Today (Wednesday) is the 22nd straight day in which the S&P 500 has not closed up or down at least 1 percent; this has only happened 10 times over the last 15 years and didn’t happen once from 1997 to 2004;
2) In those 10 times it did happen, the S&P 500 stocks were up 80 percent of the time 1 to 3 months out; when going out 3 months, the average return is almost 4 percent. (Read more: Stocks Mixed Ahead of ECB; Nokia Skids 15%)
3) helping all of this is that we are going into a seasonally strong period: in the last 84 years, the S&P 500 is up 73 percent of the time, easily outpacing the other quarters.
—By CNBC’s Bob Pisani
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