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The record-breaking year saw 25% growth in the S&P 500.
Ryan Detrick, head of market strategy at LPL Financial, stated that the gain indicates the potential for a 11% increase in 2022.
He wrote that such a gain next year would have been better than the average.
According to LPL Financial's head market strategist, the S&P 500 has gained 25% this year. This will likely lead to a better than average performance in 2022.
This year's broad market index saw its first close above 4700. Monday's session marked the eighth consecutive finish at an all-time high and the longest winning streak ever since 1997. The market value of US stocks has increased to $39 trillion due to its performance this year.
Ryan Detrick (chief market strategist at LPL Financial), stated that while the index has risen by more than 25% over the years, the average close of the S&P 500 was 11.6%. This statement was made in a Tuesday tweet. After a 25% increase, the index rose 12 of 14 times. This is an 85.7% rate.
He wrote, "In other words: better than your average years of up 71.8% and up 9.2% on the avg.
After earnings had been largely reduced by the pandemic in 2020, a boom in corporate profits has been the backbone to the gains.
According to FactSet data released November 5, the potential blended earnings growth rate for the index of 39.1%, will be the third highest year-over-year earnings rate since 2010. Last week saw 89% of S&P 500 companies release financial results, while 81% beat analyst expectations.
The S&P 500's performance suggests that there will be a Santa Claus rally in December, in addition to the gains expected next year.
Detrick posted another tweet on Twitter, stating that only four years have passed since the S&P 500 rose more than 25% in the month of November. This is a 30 year stretch.
He wrote: "Would stocks be higher in December all four times?" Adding the following list to his thoughts:
1995 +1.7%
1997 +1.6%
2013 +2.4%
2019 +2.9%
2021 ???? 2021????
