Three Down Weeks Since the End of August

Since bottoming at the end of August 2010, the stock market has traded in pretty much one direction:  higher. This is especially true for the S&P 500, which amazingly has had only 3 down weeks during that time period.  Two of those down weeks occurred in November, and one in September, which meant the S&P 500 was up every single week in October and December of last year.  So far it’s up 3 straight weeks to start 2011, assuming it closes higher this week.

A few market sectors have sailed about as smooth as the S&P 500 during this run, with very few down weeks. These include energy, consumer discretionary, technology, and broker-dealers. If investing just stayed this easy forever, we could all retire early!