April Is Historically Good Month For The Stock Market [AUDIO]
Wall street is looking forward to good things for stocks this month. History shows April has been one of the year's best performers.
And while no one will guarantee gains just because the Dow has averaged an increase just over two percent over the past 50 years in April, Mercer County stock analyst Ken Kamen also points out that in the past five years stocks during April have gained an average of 4.5 percent, and in the past decade, the April gains have averaged 2.2 percent.
Kamen theorizes that some investors who decide to dump poor-performing stocks at the end of the year decide to, "get back on the horse" when spring arrives. This April comes in the middle of continuing economic improvement. The markets will get another look at whether the recovery is real this Friday when March's jobs report comes out.
Kamen warns that although there is a rally ongoing in stocks, there is also a lot of uncertainty looming at the end of this year about what Washington will do when many Bush-era tax breaks expire.