Boston, MA 02/13/2014 (wallstreetpr) – Investors have every reason to be optimistic in 2014, more than they were during 2013. One of the key indicators that investors should look at when finding out more on what to expect in 2014 is the SPDR S&P 500 ETF Trust (NYSEARCA:SPY). The market is quite optimistic even though some of the factors cited for the belief that 2014 will be a much better year than 2013 lack merit. In 2013, SPY’s index went so close to achieving a 30 percent increase in the market. This strong performance was quite unusual for stocks, and indicates that in 2014, the market could return to its usual trends, hence presenting no reason for being optimistic.
During the last six to seven decades, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has only witnessed growth of more than 25 percent twelve times. If you want to talk about 30 percent gain, then it would be prudent to learn that SPY has only witnessed such not more than five times in the last sixty to seventy years. What this means, is that the latest trend could remain as it is in 2014. However, the other factor that no one should forget is that the latest trend could be temporary success, which will soon revert to its usual levels. However, it is worth mentioning that every time such gains take place, stocks often maintain the same levels going into a new year, hence investors should expect the same in 2014.
In the past years, whenever SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has risen by more than 20 percent, it has often kept the level of growth around 10 percent in the following year. This has happened around four out of every five times. Similarly, whenever SPY enjoys growth of around 30 percent or more, it has often maintained growth levels of 14 percent in the following year. Therefore, and with this in mind, it is safe to say that stocks should grow by between 10 percent and 14 percent in 2014. The precedence has already been set in the past sixty to seventy years, and this year should be no different bearing in mind that the economy should be doing than it has done for quite some time.
Averagely, SPY has maintained growth levels of around 7.3 percent every single year since the 1950s. Therefore, what investors should pick out from this is that once the stocks rise in any given year, it will continue experiencing gains in the succeeding year. Everyone who has been optimistic about the performance by SPY has a valid reason for doing that. Although 2013 was not one of the best years for SPY, the situation is expected to be much better in 2014, unless the unexpected take place. Last year, the US government shutdown had a negative impact on SPY and stocks in general, and if the same is avoided in 2014, investors have a reason to be happy.
In summary, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has one of the best opportunities to grow and maintain higher levels of growth in 2014, if everything else remains as it has been, or becomes much better than before.
