2012: 2011 Redux?
Wednesday, February 1, 2012 at 02:39PM The S&P 500 has done extremely well since the start of the fourth quarter. The index started the fourth quarter at 1,140 and is currently in the low 1,320s. The movement of the index over the last four months bears a striking resemblance to its movements over the same time period a year earlier. Below is a chart comparing the S&P 500 from the end of Q4 2010 through the end of January 2011 to the end of Q4 2011 through the end of this January. Aside from some divergence in the month of October, the market has pretty much followed the same script.
We know how 2011 ended up playing out, and investors certainly aren't hoping for another repeat. As shown in the chart below, the S&P 500 right now is nearing levels that it peaked out at last February. The index did go on to make a new high in late April of last year, but then it fell out of bed from May through September.
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