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%.

According to Bank of America strategist, on Wednesday, the day Trump declared a decisive victory in the presidential election, a massive inflow of 20 billion US dollars flowed into US stock funds. Bank of America strategist Michael Hartnett cited EPFR Global in a report, stating that this was the largest single-day increase in five months. Small cap stocks, believed to benefit from Trump's protectionist stance, attracted the largest inflow of funds since March, reaching 3.8 billion US dollars.

After the US election results were announced and the Fed cut interest rates again, the US stock market rebounded to record highs this week. The S&P 500 index is expected to achieve the largest single-week increase in a year. While Trump's proposal to reduce corporate tax rates is expected to boost corporate earnings, investors are also concerned that the tariffs and immigration policies the Trump administration may introduce could once again trigger inflation. The 10-year US Treasury yield initially soared after Trump's victory, although it has since given back most of the gains.

Hartnett said, 'Inflation prosperity equals selling bonds.' He mentioned that Trump's 'sweep' could bring about 'big policies,' including around 8 trillion US dollars in tax cuts, 3 trillion US dollars in tariff revenue, and 1 trillion US dollars in spending cuts. Republicans won control of the Senate, while the House elections continued to be undecided in about 30 congressional elections held on Thursday due to uncounted votes.

According to the report, for the week ending November 6, US stock funds increased by a total of 32.8 billion US dollars. European stock funds experienced outflows for the sixth consecutive week, amounting to 0.9 billion US dollars. Concerns about the potential impact of tariffs have put pressure on the European stock market.

Editor / jayden