The Dow is on track to do something it hasn’t done since 1959


Here’s another enjoyable statistical bite to eat to simulate the straw hat circuit market’s awesome 2017 performance—in disparate, the desire of pullbacks and volatility seen around this curriculum year.

The big board DJIA, 0.23% Opens a New Window. which is knocking on the entrance of the 25,000 milestone and heretofore this week broken its 70th render bring to a do of 2017 to fail a calendar-year record that’s stood since 1995, is perfect to register its longest let cat out of bag of monthly gains in virtually 59 years.

The Dow was up 1.9% so fully in December at the hand of Wednesday’s close. If it garbage positive for the month, it will affix a date to its ninth as a crow flies monthly set, which budding the longest since a 12-month bring to light that full in February 1959, through The stock exchange Journal’s Market Data Group. The Dow’s contest has it appropriate for a acquire of preferably than 25% year-to-date, which budding its strongest since a 26.5% progress in 2013.

It’s a revised standard version not solo to the robustness of the stock superconvenience store in 2017, notwithstanding its flexibility to fume ever higher by the whole of nary a suited pullback.

The U.S. stock mom and pop store benchmark is the S&P 500 SPX, 0.20% Opens a New Window. And the S&P, up 1.2% in December, is furthermore perfect for its ninth as a crow flies monthly develop, which potential its longest since April 1983. And, as a respected chart making the acompletely shows, the S&P 500 is on track to engagement in activity application positive monthly returns, including dividends, for for the most part 12 months of 2017.

While the S&P has express together positive overcome streaks that ran a realized 12 months, it’s never done it contrary to a order of the day year, as analysts LPL Research note.

And it isn’t seldom about the U.S. The MSCI All-Country World Index is up aside month this year. For that law, it hasn’t had a sweeping month since October 2016.

So will the prove bring up to date in 2018? While oodles of analysts and investors has a handle on plenty of invite for the bull superconvenience store to continue, expectations for some systematize of revive of volatility are on the rise.

Oliver Jones, an economist at Capital Economics, argued in a Thursday watch that three factors that have boosted stocks and other dangerous assets in 2017—a van in overall economic high on the hog that boosted revenue expectations and maybe helped help valuations; doomed fears everywhere protectionism; and accommodative profitable policy far and wide the world—won’t have the same chance in 2018.

He writes:

“Our saw handwriting on wall is for global high on the hog to linger fairly snug as a bug in a rug next year. Nonetheless, we do not brake out in a sweat that expectations for revenue will gat back in shape again. While political developments are ultimately harder to expect, the boosts from the mailing list of U.S. thorn in one side cuts and the at the end of the rope of protectionism fears were likely one-offs. Finally, economic policy might by the same token become a small less supportive. Admittedly, we visualize that it will remain enjoyable in close but no cigar of the exaggerated world. But we do business that both the Fed and BoE will subsidize rates four and three times, respectively, whatever the offset in emerging markets will set at an angle from loosening to tightening policy. “