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%.

"Stock God" Warren Buffett's $Berkshire Hathaway-A (BRK.A.US)$ /$Berkshire Hathaway-B (BRK.B.US)$ Preparing to issue multiple yen bonds on Thursday, this move has sparked speculation in the market that the legendary investor may be seeking to increase investments in Japan.

Berkshire Hathaway launched a seven-part bond trade this week, with maturities ranging from 3 to 30 years. Except for the 3-year bonds, all bonds are priced higher than the yen bonds issued by the company in April with the same terms. Among them, the 10-year bond has a spread of 82 basis points over the mid-swap, up from 71 basis points in April; the 20-year bond spread is at 91 basis points, compared to the previous 78 basis points.

Berkshire Hathaway's fundraising plan has attracted close attention from stock market investors because Buffett has previously purchased shares of Japanese trading companies and helped the Nikkei 225 index reach historical highs. In his annual shareholder letter in February of this year, Buffett stated that Berkshire Hathaway's investments in Japanese companies are mostly financed through the issuance of yen bonds.

If, as some analysts speculate, Berkshire's investment choices expand to include other stocks such as banks, insurance companies, and shipping companies, this could provide a greater boost to the Japanese market.

Nomura strategist Tomochika Kitaoka believes that financial conglomerates such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Trust Group, and Sompo Holdings Inc. all possess characteristics suitable for Berkshire Hathaway's investment portfolio. However, some observers also think that given Berkshire Hathaway's recent frequent sales of Bank of America (BAC.US) stocks, Buffett's focus will still be on trade companies.

This transaction also serves as a key test for the demand of yen-denominated bonds. The widening premium of long-term bonds reflects investors' cautious attitude towards the Japanese interest rate environment.

It is widely anticipated that the Bank of Japan will maintain interest rates at the next policy meeting on October 31. After Japan's newly appointed Prime Minister Shizo Abe stated last week that it is currently not appropriate to raise rates, some economists have postponed their predictions of a rate hike by the end of the year.

Editor / jayden