Earnings Season Is The Best Time To Buy Stocks

Q2 earnings announcement season is around the corner.  And for traders who believe history is a good guide to the future, LPL Financial’s Jeff Kleintop has some research for you regarding earnings season stock market performance.

From his latest Weekly Market Commentary:

This year may also continue to follow the pattern of performance around earnings season. In the past nine quarters encompassing all of 2010 through the first quarter of this year, the S&P 500 posted an average gain of 3.14% during the six-week period beginning in the last week of the quarter (the end of the pre-announcement period) when the results of a little more than half of the S&P 500 companies are reported. During the other weeks of each quarter, the stock market has posted a loss, on average, of -1.46%.

Here’s a breakdown.

lpl stocks

Photo: LPL Financial

Here’s a chart that doesn’t really add a lot of value.  But it was in Kleintop’s note and it’s kind of fun.

lpl stocks

Photo: LPL Financial

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