In a note to clients Monday, analysts at Argus assessed whether April is a good month for stocks, noting that the average gain for the S&P 500 in the month of April since 1980 is 1.70%.
As a result, the firm revealed that April is, in fact, the second-best month of the year for stocks.
"We note that market returns in April have exceeded 5% on eight occasions since 1980, including a 9.4% gain in 2009 (as the market was beginning to recover from the financial crisis of 2007-2009), a 12.7% surge in 2020 (as the market started to recover from the onset of the COVID-19 pandemic), and a 5.1% gain in 2021 (as COVID-19 vaccines were rolled out)," Argus wrote.
They added that there "also have been some clunkers, including 2002 (-6.1%), 2000 (-3.1%), and 1981 (-2.3%)."
Argus explained that last year, stock prices in April increased 0.9%, noting it is a busy month on Wall Street as companies report first-quarter results.
"This year, 1Q earnings are expected to grow for the third consecutive quarter as the economy continues to expand," added the firm. "As long as interest rates remain under control, stock investors may be able to build off their 1Q gains."