With July beginning on Friday we analyzed average sector performance during the summer months of July and August since 1962. We focused specifically on when these months occurred during a bull market.
Historically cyclical sectors have outperformed the broader market with energy, materials and technology the top three performers. On average, energy is up 3.4% during July and August of a bull market, materials 3.2% and tech 2.8%. The average S&P 500 gain is 2.6%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.