Here’s Some Hopeful News: April Is Stocks’ Best Month

For the past 20 years, the fourth month has been the best for the S&P 500, rising an average 1.7%, LPL Financial says.

To T.S. Eliot, April is the cruelest month. Not to investors, though. For the past two decades, April has been the top performer for the S&P 500, LPL Financial research shows.

In fact, since 1950, the S&P has closed up in April for 15 of the 19 years when January, February, and March were positive months—and such a trifecta is the case in 2019. What’s more, the Dow Jones Industrial Average, which is a narrower index, has been up in April for the past 13 years in a row.

“April may bring showers, but lately it has brought a lot of green as well,” said Ryan Detrick, LPL’s senior market strategist.

This year’s rally, coming after a fourth quarter whipsawed by the trade war and a seemingly relentless upward parade of Federal Reserve rate hikes, suggests the momentum will continue through April. A seeming breakthrough in US-China trade talks and the Fed’s announcement of a pause in its monetary tightening both feed into that narrative. The first three trading days this April have all been positive.

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The title for the worst month is September. That, for instance, was when Lehmann Brothers collapsed in 2008, setting off the financial crisis. The second-worst month is June, perhaps because investors tend to back off in summer. Recall the old adage: “Sell in May and go away.”

That adage may explain why April tends to be a superior month in the market: Investors might be lining their portfolios with favorite stocks before the lighter-trading summer months. LPL suggested that April’s warmer weather might also be buoying investors’ moods. As April is tax filing month, putting refunds to work in the market could be another explanation.

Whatever the reason, LPL says its target for the S&P 500 is 3,000 this year. Already, the index is up 14.6% in 2019. To reach the target, it needs to climb a mere 4.4% more.

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Norway’s Real Estate Shift Shuffles Its Leadership

World’s biggest sovereign wealth fund adds some top officials from its property arm, now being sucked into the investment division.

With the sunset of its real estate arm comes a sunrise for Norges Bank’s leadership.

The plans of Norway’s $1 trillion-plus Government Pension Fund Global to consolidate its real estate business into the bank’s investment division became official on April 1, and it wasn’t just the assets that got absorbed—so did its chiefs.

Karsten Kallevig, the subset’s former chief executive officer, has become Norges Bank’s chief investment officer of real estate. He now reports to Yngve Slingstad, the sovereign wealth fund’s head honcho. Per Løken, Romain Veber, and Mie Holstad will still be under Kallevig’s command.

Kallevig has been with the organization since 2010.

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Other shifts include Nina Hammerstad, the real estate arm’s former chief operating officer, who will become the fund’s chief people and operations officer on June 1.

One person who will not be staying is Sirine Fostad, who will relinquish her chief human resources officer role on May 31 to become CEO of Grieg Maturitas, part of the Grieg Group holding company.

The fund’s decision to restructure  stems from its goal to whittle its target allocation to real estate, from 7% to between 3% and 5%. It specifically wants to reduce unlisted assets, shifting its focus to listed properties. The fund was criticized by Norway’s Ministry of Finance last year for its unlisted properties, dubbed by critics as “trophy assets,” due to their status as privately held and not traded.

The fund said in February this move would simplify its overall strategy while being cost-effective. It declined to comment further.

 

Do you have any thoughts on this article? If so, feel free to share your opinions in the comments section below!

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