Since 1950 there have been 5 instances where SPX finished the year above 30% from the previous year.
Let’s look at some data.
Correlation between the 2 years weekly returns so far: .21
1995 27th week return for year: 21.14%
2013 27th week return for year: 14.57%
BUT… in most instances when SPX end of year returns exceeded 30% it was at the beginning of a strong bottoming trough in earnings.
On a tangential note 1995 was the year of the OJ Simpson trial. 2013 is the year of the Zimmerman Martin trial…