Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.

Bank of America said in a research report on Wednesday that improving fundamentals are key for investors seeking to diversify beyond large-cap stocks and should consider the equal-weighted S&P 500 index.

One reason for profit growth. Apart from the 'Big Seven', the remaining 493 stocks in the S&P 500 index are expected to grow 8% year on year in the second quarter. Subramanian said that this would be the first growth for the S&P 493 index since the fourth quarter of last year.$Amazon (AMZN.US)$and$Alphabet-A (GOOGL.US)$Please use your Futubull account to access the feature.$Apple (AAPL.US)$Please use your Futubull account to access the feature.$Meta Platforms (META.US)$N/A.$Microsoft (MSFT.US)$,$NVIDIA (NVDA.US)$And.$Tesla (TSLA.US)$However, she noted that small-cap stocks that she tracked have been in a profit decline since the fourth quarter of 2022. So far, the S&P 600 index saw a year-on-year decline of 11% in the second quarter.

$Russell 2000 Index (.RUT.US)$Small cap.

At the same time, Subramanian said that despite large-cap stocks dominating recent market pullbacks, the trading price of the S&P 500 index with equal weight is significantly discounted compared to the S&P 500 index, approaching levels seen during the tech bubble.

"There is no denying that the S&P 500 index is 8% higher in price than the Russell 2000 index, and the historical average level is 1%." However, she also mentioned that "do not forget the risks", based on the current stock risk premium, under other conditions, the equal-weighted S&P 500 index should have a premium over the S&P 500 index, with a premium of 12% over the Russell 2000 index.

The assets of Invesco S&P 500 Equal Weight ETF are $53.4 billion, with a year-to-date increase of more than 6%.

Editor / jayden