All-time performance records are in sight, but some caution is warranted.
1) DJIA Record in Sight
a. Second longest rally without a 5% correction, will become the longest if DJIA hits new highs next week, p.3–7
b. Current longest stretch, November 1994–March 1996, ended with a 6% correction, p.3–4
2) S&P 500 Records
a. October would be the 12th consecutive monthly gain for the total return index (assuming reinvested dividends). For the total return index,
this would match the two longest stretches which occurred in 1935–1936 and 1949–1950.
b. However, in the two prior 12 month periods, the S&P 500 sold off 5% and 7% respectively, in the 13th month.
