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Solid “Best Six Months” does not improve “Worst Six Months” Prospects

In the above two tables, all above average “Best Six Months” (BSM) periods for DJIA and S&P 500 appear with the subsequent “Worst Six Months” (WSM) lined up in the right side of the table. Any BSW that was greater than 7.5% for DJIA and 7.1% for S&P 500 are included. This resulted in 33 occurrences for each. For DJIA, the subsequent WSM period in this scenario differed little when compared to all 67 years. Its average gain at 0.42% is unchanged and the frequency of losses was also little changed (42.4% compared to 40.3% in all 67 years). S&P 500 however, did see a modest improvement during the WSM. Its average climbed to 3.30% and frequency of declines fell from 37.3% to 27.3%. Overall, an above average BSM period did not have a meaningful impact on WSM performance.