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  • Writer's pictureRealFacts Editorial Team

Bank of America Analyst Bucks Trend, Predicts Potential Summer Rally Despite Market Volatility

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In CNBC’s article “Bank of America says do not sell in May and go away,” Alex Harring quotes Stephen Suttmeier, Bank of America's technical research strategist, saying, “Do not sell in May and go away,” With this quote, Stephen Suttmeier offers a provocative counterargument to investors. Against the usual belief, Suttmeier suggests there might be a rally during the summer, challenging the idea that stocks should be ignored as spring turns into summer. Using historical information, he changes the story, focusing on the usual strength seen from June to August, which has historically been recognized as the S&P 500's second-best quarter since 1928.

Suttmeier's analysis goes beyond the basics, looking into historical data to show how strong the S&P 500 tends to be during the summer months. Since 1928, summers have been the second-strongest quarter for the S&P 500. He also looks at how presidential election years affect the market. During these important times, the S&P 500 has tended to go up about 75% of the time, with an average return of 7.3%.

Furthermore, Suttmeier highlights how presidential election years can impact market trends. Historically, during these crucial times, the S&P 500 tends to rise about 75% of the time, with an average return of 7.3%. Amidst market volatility driven by concerns about changes in interest rates and inflation, Suttmeier's perspective brings a dose of optimism. Despite indicators like the 28-week Williams %R, a measure of intermediate-term momentum, showing that the market might be overbought, Suttmeier sees this as a sign of a strong market, suggesting that current conditions could lead to significant gains based on past trends.

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