NEW YORK ( TheStreet) -- The second quarter of 2012 has a lot to live up to but investors can take some solace in the fact that it's got history on its side.
Research firm Birinyi Associates noted earlier this week that the S&P 500, which finished the first quarter up 12%, usually books a respectable gain in the quarter following 10%-plus rise in the previous three-month period. According to Birinyi, the index has tacked on an average of 5.2% in the quarter following a 10%-plus gain and finished positive 88% of the time since 1962.
If said 10%-plus gain comes in the first quarter, the S&P 500 has averaged a 3.4% advance and been up 86% of the time.
"We are frequently asked what is 'going to be different,' or for 'themes' in the next month, quarter, year etc.," Birinyi said. "Our response has always been that the market pays no attention to the calendar, rather moves in cycles. With that being said, we expect more of the same as we start the second quarter."Michael Gayed, chief investment strategist at Pension Partners, also feels bullish about the coming quarter. He cites narrowing credit spreads as evidence of tremendous market resilience despite Greece effectively defaulting, slow growth in Europe, and fears over a China slowdown.
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