We Just Had An Amazing Month For Stocks: Now Here's What's Going To Happen Next

Wall Street Trader Looks into Monitor with Worry

Photo: AP Photo/Jin Lee

After a huge market rally – like the 10.8% gain we saw in October — investors may want to pause before calling their brokers. The question that looms large: can the market grow any more before some correction?We looked at the nine biggest months for stocks since 1950 to see what happened next.

On average, the S&P 500 actually gained 4.9% in the next three months. In some years, it went even higher: by November of 1982, the market tacked on an additional 15.9% after the outpaced 11.6% growth seen just that August.

The following month isn’t always a safe bet. Nearly half of next month returns after a record, fall into the red.

October '74 Rally of 16.3%

Next Month: -5.32%

Next Two Months: -7.23%

Next Three Months: +4.17%

Source: Bloomberg

January '87 Rally of 13.2%

Next Month: +3.69%

Next Two Months: +6.43%

Next Three Months: +5.21%

Source: Bloomberg

January '75 Rally of 12.3%

Next Month: +7.06%

Next Two Months: +9.38%

Next Three Months: +14.55%

Source: Bloomberg

January '76 Rally of 11.8%

Next Month: -1.14%

Next Two Months: +1.89%

Next Three Months: +0.77%

Source: Bloomberg

August '82 Rally of 11.6%

Next Month: +0.76%

Next Two Months: +11.88%

Next Three Months: +15.92%

Source: Bloomberg

December '91 Rally of 11.2%

Next Month: +0.70%

Next Two Months: +1.76%

Next Three Months: +3.66%

Source: Bloomberg

October '82 Rally of 11.0%

Next Month: +3.61%

Next Two Months: +5.18%

Next Three Months: +8.67%

Source: Bloomberg

August '84 Rally of 10.6%

Next Month: -0.35%

Next Two Months: -0.35%

Next Three Months: -1.86%

Source: Bloomberg

November '80 Rally of 10.2%

Next Month: -3.39%

Next Two Months: -7.81%

Next Three Months: -6.58%

Source: Bloomberg

The important months ahead

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