It has been a rough start to the most wonderful month of them all, with the S&P 500 Index down each of the first two days of December. Don’t stop believing just yet, though.

Everyone knows December has usually been a good month for stocks, but what happened last year is still fresh in the minds of many investors. The S&P 500 fell 9.1% in December 2018 for the worst December since 1931. That sounds really bad, until you realize stocks fell 30% in September 1931, but we digress.

One major difference between now and last year is how well the global equities have been performing. Heading into December 2018,

Hindsight is 20/20, but finding clarity in future uncertainty can be fuzzy.

As we look forward to the year 2020 and a new decade, some key trends and market signals will be important to watch, including progress on U.S.-China trade discussions, an encouraging outlook from corporate America, and continued strength in consumer spending. We expect the U.S. economy to continue to grow and support stocks, as our year-end 2020 S&P 500 Index fair value target range is 3,200–3,300.

“This year, market technicals look strong but valuations appear stretched, unlike late 2018 when technicals were struggling but fu

Market momentum, global participation, and technical support all provide reasons to think gains may not be over for 2019. While volatility is always possible, record highs need not be feared, and seasonal tendencies may remain a tailwind.

More Room to Run

The S&P 500 Index is currently on pace for its best year since 2013, up more than 25%. However, technical analysis is based on the idea that a market in motion may stay in motion, and six of the last seven times the index gained more than 20%, the following year saw double-digit gains. Context is also important, so while year-to-date numbers might look large, the index

U.S. stocks rose for the seventh time in eight weeks as investors took cues from a new batch of optimistic trade headlines. The S&P 500 Index gained 1% during the holiday-shortened week, notching three record high closes along the way. Stocks jumped on Monday after China announced it would tighten rules on intellectual property, a step forward in one of the United States’ primary talking points in trade discussions. Equities then pushed higher on several headlines indicating that both parties are close to signing a limited trade agreement, even though President Donald Trump signed into law a bill supporting Hong Kong protestors.