Sunday, October 05, 2014

Week Ahead Magazine: Equity Market Entering Seasonally Strong Period

Last week included two trading days to end the third quarter and three trading days to start the fourth quarter of 2014. In total the week was one where nearly all U.S. and international indices ended in the red. From a positive perspective strength was seen in U.S. markets after mid day on Thursday and this carried over into Friday. For the week though, the Russell 2000 index continues to struggle to find support and was down 1.3% and is now down 5.1% year to date. The other major U.S. indices were down .6 to .8% on the week. Overseas saw braod weakness as well:
  • the DAX (Germany) down 3.1%,
  • the CAC (France) down 2.6,
  • the Nikkei 225 (Japan) down 3.2%, and
  • the Kospi (South Korea) down 2.7%.
In spite of the weakness ending the third quarter and at the beginning of the fourth quarter, the market is entering a seasonally strong period.  A number of reports, one included in this week's magazine, note in a midterm election year October is the strongest month on average for the S&P 500 Index. This October market strength carries over into the full fourth quarter through the second quarter of year three of the presidential cycle. History is not a guaranty of future outcomes; however, the future does have a tendency to rhyme.

From The Blog of HORAN Capital Advisors
Source: Dana Lyons

For the week ahead, the economic reporting will be light. Below is a list of the economic data to be reported in the coming week.

From The Blog of HORAN Capital Advisors

Following is the link to this week's Week Ahead Magazine.

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