Four Months in a Row

A Rare Occurrence

Following the two down months of February and March, the S&P has strung together four consecutive monthly gains, if we include July. This actually marks the third year in a row when the April – July period marked gains for each month consecutively.

Historically, this has been a rare occurrence. In fact, the familiar saying of “sell in May and go away” has merit, since very often, weakness crops up in the markets during these months, even during strong years. Historically, these months have weaker returns.

Looking back, there have only been 11 years since 1928 where stocks gained in each of these months. What does that portend for the rest of the year? While August has proved shaky in those years, the remainder of the year finished exceptionally strong. The average return during the final five months of the year was 10.8%. This compares to gains only 70% of the time for all other years. Maybe, this indicator spells good things for the markets.

(data furnished by Bespoke Investments)

Symbiotic Relationship

As a follow-up to my Investment Overview on the symbiotic relationship between government and the stock market, the link below describes how the current trade tensions might be resolved.

Generally, the market has shrugged off the obvious ill effects of the tariffs. The reason is that the stock market knows that ultimately, the government cannot afford a policy that would be detrimental to stock prices.

Learn More Here…


Peregrine Asset Advisers ● 9755 SW Barnes Rd. Suite 295 ● Portland Oregon 97225
503.459.4651 ● 800.278.1420 ● www.peregrineaa.com


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*Past Performance is no guarantee of future results. Investment management involves the possibility of losses. Significant general stock market moves up and down can influence the performance of client portfolios. Composite returns are based on client portfolios of over $100,000. Not all clients are included in the composites. All returns include the reinvestment of dividends. All returns are net of fees. Composite returns are derived from aggregated, time weighted returns for clients of Peregrine Asset Advisers. Individual client returns can deviate from the composite returns. While Peregrine uses the S&P 500 as a benchmark, Peregrine does not attempt to mimic the structure of this index. Individual client portfolios vary. The number of stock positions also varies per client.