S&P 500 Takes Two Steps Back

Chart of the Week for September 29-October 6, 2000

The S&P 500 fell 1.5% last Friday, pushing the index into negative territory for the quarter. This marks the first time in over sixteen years that this widely quoted benchmark has lost ground for two consecutive quarters. The first and second quarters of 1984 was the last time this occurred. 1982 and 1981 also saw two losing quarters in a row. Since 1950, the third quarter, on average, underperforms all others; on the other hand, the fourth quarter historically provides the highest return. Will history repeat or is this another reminder that past performance is no guide for the future?

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