June isn’t supposed to be a good month for the S&P 500. But it was — especially for investors who chose wisely.
All told, had you invested $10,000 in January and reinvested your money into the top-performing stock currently in the S&P 500 each month in 2023, including Carnival (CCL) in June, you’d have $69,878 now, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
That’s an impressive six-month gain of nearly 600%. It’s quite a feat given the S&P 500 is up just 15.9% so far this year. The same $10,000 invested in the S&P 500 would be worth just $11,590 now. That’s a gain of just $1,590. June also extended a big bounce in massive tech stocks, especially any associated with AI.
Investors hope June is just the start to the rest of a stellar year.
“In years when the S&P 500 was up sharply (10%+) in the first half, median performance during the month of July, all of (the third quarter), and the entire second half have all been better than the historical norm,” said Bespoke Investment Group.
Did June Kick Off A Strong Second-Half For The S&P 500?
Hindsight is 20-20. And clearly, few if any investors could have picked the top stock in each of the past six months, as it’s not a repeatable strategy. But the staggering numbers are a reminder to investors that gains can be found in a choppy market.
The S&P 500 itself provided a tailwind in the month of June. That was a welcome change, as the month of June isn’t normally a great one for the S&P 500, says the “Stock Trader’s Almanac.” The S&P 500 gained 5.2% in June. That’s much better than the 0.1% average gain in the month of June going back to 1950, says the Almanac. May is only the ninth best month in terms of returns historically.
Top S&P 500 Stock Of June: Carnival
Revenge travel is real. And it’s paying off nicely for S&P 500 investors. Cruise operator Carnival was the S&P 500’s top stock during June — jumping 67.7%.
Investors are clearly jumping in ahead of an about-face for the company’s fundamentals. Carnival is expected to post a profit of 77…